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GM Board Would Consider Bankruptcy

Directors differ with CEO Wagoner as automaker struggles

By Matt Cantor, Newser Staff

Posted Nov 22, 2008 8:11 AM CST

(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.

Democratic leaders asked automakers yesterday for an assessment of their needs. (AP Photo/Gerald Herbert)

In this Aug. 21, 2008 file photo, General Motors Chairman and Chief Executive Officer Rick Wagoner greets employees of the GM Lordstown Assembly Plant in Lordstown, Ohio. General Motors Corp. will extend... (AP Photo/Ron Schwane, File)

Auto industry executives, from left, General Motors CEO Richard Wagoner; Chrysler Chief EO Robert Nardelli; and Ford CEO Alan Mulally, testify on Capitol Hill in Washington Wednesday. (AP Photo/Evan Vucci)

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GM Board Would Consider Bankruptcy

Directors differ with CEO Wagoner as automaker struggles

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GM Board Would Consider Bankruptcy

Directors differ with CEO Wagoner as automaker struggles

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OTHER STORIES ON OUR RADAR

Congress • bankruptcy • General Motors • Rick Wagoner • bailout • board of directors • auto bailout

MOST POPULAR STORIES

[ By Views ]

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More Newser Stories

Detroit Bust Would've Been Better Than Bailout

Ex-Prez Bush says bailout his idea, and a good one

Saab Declares Bankruptcy

GM vetoes deal involving Chinese company

Car Crash Victims Screwed by Auto Bailouts

GM and Chrysler were freed from most of their legal responsibilities

Obama Should Campaign on Auto Bailout

Some Republicans were ready to let GM, Chrysler die: Jonathan Cohn

Cantor: No Bailouts, Bankruptcy for States

States already have tools to fix budget woes, majority leader says

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