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FRIDAY, NOVEMBER 27, 2009
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GM Board Would Consider Bankruptcy

Directors differ with CEO Wagoner as automaker struggles

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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.

Democratic leaders asked automakers yesterday for an assessment of their needs.
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 its holiday shutdown or make other production cuts at five factories, which includes the Lordstown plant, as it...
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.
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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morenogabr
Nov 23, 08 5:21 PM CST
Well, excuse us Rick Wagoner... We grew up with the idea that beggars cant be choosers. Take it or leave it. Reply
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