GM: Give Us More Money or We'll Go Bankrupt

GM, Chrysler working to prepare turnaround plans before Tuesday deadline
By Rob Quinn,  Newser Staff
Posted Feb 14, 2009 7:17 AM CST
General Motors Corp. headquarters, background, in Detroit, Wednesday, Dec. 10, 2008.    (AP Photo/Paul Sancya)
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(Newser) – General Motors will put Congress between a rock and a hard place when it presents its turnaround plan next week, reports the Wall Street Journal. Insiders say the automaker will ask for at least another $5 billion in loans on top of the $13.4 billion already received to keep it going beyond the first quarter, and will tell lawmakers its only other option is reorganization through bankruptcy.

Some lawmakers believe bankruptcy is the best way forward for the company, but letting the Detroit icon go bust may be a politically unpalatable move. GM chief Rick Wagoner has dropped his firm opposition to bankruptcy and has helped craft a contingency plan. Chrysler is also due to present its viability plan Tuesday and has signaled it plans to ask for another $3 billion to stay afloat.