GM Board Would Consider Bankruptcy

Directors differ with CEO Wagoner as automaker struggles
By Matt Cantor,  Newser User
Posted Nov 22, 2008 8:11 AM CST
Democratic leaders asked automakers yesterday for an assessment of their needs.   (AP Photo/Gerald Herbert)
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(Newser) – Some General Motors’ directors are willing to consider bankruptcy protection as an option for the failing automaker, the Wall Street Journal reports, marking an unusual disagreement with CEO Rick Wagoner. Wagoner told Congress repeatedly this week, in seeking an immediate financial bailout, that reorganizing through a Ch. 11 bankruptcy is not viable for his company.

GM is expected to run out of cash as early as January, and may not be able to avoid bankruptcy unless federal help is forthcoming. Democratic leaders in Congress have postponed consideration of bailout bills until next month, calling for restructuring plans from the Big 3 before they make a decision. GOP congressmen see a prepackaged bankruptcy as an option. GM shares closed at $3.06 yesterday, down from $42 a year before.