General Motors Corp. (GM) said if it were to file for bankruptcy
relief, it would likely sell assets to a new operating company and
liquidate its remaining assets.
The company detailed its potential plan in a Securities and
Exchange Commission filing Thursday, ahead of a June 1 deadline
imposed by the U.S. government to have a suitable restructuring
plan in place or face a bankruptcy filing.
GM said in the event it doesn't receive enough tenders under its
exchange offer for $27 billion in notes by June 1, it expects to
seek relief under the bankruptcy code.
The company added it is continuing to solicit support from its
bondholders, saying if the exchange offer was successful, it would
allow GM to restructure out of bankruptcy court.
Rival Chrysler LLC already sought protection late last month as
it works to stay afloat and plans to sell the bulk of its assets to
a new company that will be owned by Fiat SpA, the United Auto
Workers union, and the U.S. and Canadian governments.
GM is looking to focus on four core brands, while closing and
selling off its underperforming offerings as it looks to make
itself more viable amid a sharp downturn in auto sales.
Shares were down 0.9% to $1.14 in after-hours trading. The
company's stock has lost 91% of its value from September.
- By John Kell, Dow Jones Newswires; 201-938-5285;
john.kell@dowjones.com