DETROIT, Michigan - May 11, 2009 - General Motors is just weeks away from the bankruptcy courts after chief executive Fritz Henderson reiterated that its "more probable" than ever that the car manufacturer will now file for Chapter 11 bankruptcy protection.

"It's more probable that we would need to accomplish our goals in a bankruptcy," said Henderson. "There's still a chance for it to be done outside a court proceeding."

Henderson, speaking three weeks ahead of the U.S. government's June 1 deadline by which GM must have restructured its $62bn (£41bn) debt pile, said that the company is standing firm in its decision to offer unsecured bondholders, which control $28bn of debt, just 10pc of the company.

That offer has rankled bondholders, who have suggested a counteroffer whereby they would hold 58pc of the company equity, something to which Henderson is opposed.

The company's financial situation is further complicated by the nature of GM's global set-up, and as a result Henderson, who took over after Rick Wagoner was ousted by the U.S. government in March, said that it is now assessing bankruptcy on a country-by-country basis.

GM shares fell 14 cents to $1.47. Shareholders will receive just 1pc of the restructured company under Henderson's proposals.