Thursday, April 9, 2009

GM shares skid amid reports of bankruptcy preparation

GM shares skid amid reports of bankruptcy preparationGM 3-month NYSE chart

Shares of General Motors dipped on Tuesday amid reports the company is putting more efforts into preparing for a restructuring in bankruptcy protection.

On the New York Stock Exchange, GM shares were off 27 cents at $2.00 in the trading session.

Bloomberg and Reuters have reported that the financially troubled automaker is eyeing a plan to create a new firm with GM's top assets in the event that a bankruptcy protection filing is necessary. Both news organizations cited anonymous sources in their reports.

On March 30, the administration of U.S. President Barack Obama gave GM 60 days to come up with a viable business plan. Obama said an initial submission to the government from the company did not go far enough.

Over the weekend, GM chief executive Fritz Henderson said on CNN that he would prefer to avoid bankruptcy protection but "if it's required, that's what we'll do."