Detroit, May 19: According to media reports, General Motors is likely to file for bankruptcy in 60 days as the company races to meet the June 1 deadline to cut costs and debt to avoid this.
General Motors Corp. Chief Executive Officer Fritz Henderson on Thursday, May 14 said that it is 'probable' that GM will use the bankruptcy process in an interview with Bloomberg News.
GM has reportedly sent letters to 1,100 of its dealers telling them to close which is being perceived to be another sign. On Friday, May 15 GM sent letters to the bottom 18 per cent of its dealers telling them it won't renew their contracts in October 2010.
The company right now faces a government-imposed deadline of June 1 by which time it has to cut $27 billion of bond debt, win sweeping cost concessions from the United Auto Workers union and eliminate almost 1,600 US dealers.