New GM Boss: Bankruptcy 'More Probable'

GM, Chrysler working to prepare turnaround plans before Tuesday deadline

(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. More»

Execs say that's 'way down the list,' but Detroit desperate for federal bailout

(NEWSER) - Bankruptcy is officially on the table for General Motors and Chrysler, a source tells Bloomberg. The companies may accept a pre-packaged bankruptcy, which would force the union and creditors to make concessions, in order to get government help. At least three congressmen have had their staffs explore the possibility. GM CEO Rick Wagoner has argued against bankruptcy, saying it would force the company to liquidate. More»

Hearings 'more hostile than expected,' says Wagoner

(NEWSER) - Two grueling days of congressional hearings on a bailout for the auto industry were "hostile" and the wait for an answer is "nerve-wracking," General Motors CEO Rick Wagoner told the Detroit News yesterday. GM is ready now to show Congress detailed restructuring plans to convince lawmakers to hand over billions in aid. Legislators are requiring plans from each of the Big Three automakers before they'll agree to a rescue package. More»

(NEWSER) - Now he can fly on all the private planes he wants: Former General Motors CEO Rick Wagoner will collect an $8.2 million payout package, plus a $74,000 annual pension, reports the Detroit Free Press. If he chooses, the 56-year-old Wagoner also can cash out a company life insurance policy worth $2.6 million. If this seems like a lot for the ex-chief of a bankrupt company, it may help (a little) to know that his retirement benefits were valued at $22 million only last year. More»

Insiders say government planning to trade some of $13.4B loan for equity

(NEWSER) - The Obama administration is considering trading some of GM’s $13.4 billion government debt for equity in the streamlined, post-restructuring version of the automaker, Bloomberg reports. Insiders say the move, which would be accompanied by an offer to bondholders of equity in the new entity, is part of a plan to cut GM's debt ahead of a June 1 deadline to demonstrate its viability. More»