GM Likely to File Bankruptcy as Early as Next Week
Things are beginning to move along pretty quickly for General Motors Inc. (NYSE: GM). According to a Friday report in the Washington Post, the Detroit automaker is expected to file bankruptcy as early as late next week, but could snag up to $30 billion in additional federal bailout funds.
The Post's sources on this story are those familiar with the discussions between GM and President Obama's administration, who state that the government will push them into filing either late next week or during the first week in June.
As for the extra $30 billion in federal funds, that would bring the government's total investment in the company up to a staggering $45 billion, and would give them a 50 percent stake in the automaker.
Another struggling Detroit automaker, Chrysler LLC, may emerge from bankruptcy as early as next week. They were the first of Detroit's "Big Three" to file for bankruptcy.
Both GM and Chrysler have accepted billions in federal bailout funds. They've also both announced that they would be cutting loose nearly 1,900 dealerships. The only member of the Big Three not to have accepted federal bailout money is Ford Motor Co. (NYSE: F).