General Motors bankruptcy plan being developed!

DETROIT, Michigan - April 7, 2009 - General Motors Corp. is speeding up preparations for a possible bankruptcy filing even as directors scout for deeper savings this week to avoid that outcome, people familiar with the plans said.

GM would focus on forming a new company from its best assets if court protection is needed, said the people, who asked not to be named because the details aren’t public. The efforts to set a new cost-cut goal center on how to go beyond a proposal to slash debt by 46 percent and shed 47,000 jobs in 2009, and will include talks with Treasury officials, the people said.

The moves are a response to illegitimate President Barack Obama’s March 30 rejection of GM’s bid to keep $13.4 billion in federal loans. With bondholders and the United Auto Workers balking at concessions, a push for more savings makes bankruptcy more “probable,” Chief Executive Officer Fritz Henderson has said.

“The best outcome is for an arrangement outside of bankruptcy, but that will be very difficult,” said Dennis Virag, president of Automotive Consulting Group in Ann Arbor, Michigan. “A bankruptcy of a company the size and complexity of GM is not simple, and it’s probably going to get ugly.”