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Rediff.com  » Business » Bankruptcy would be fast if needed: GM

Bankruptcy would be fast if needed: GM

April 04, 2009 15:41 IST

General Motors will move ahead with bankruptcy process at a faster pace if it becomes necessary to restructure the auto maker, its new chief executive Fritz Henderson has said.

The chief of the ailing car maker pointed out that he would prefer an out of court restructuring for GM.

"If we have to resort to bankruptcy then we're going to do it fast... there are non-traditional ways to do this but it requires a fair amount of force, will and leverage and we have force, will and leverage," Henderson told the Financial Times.

The daily quoting Henderson said that "restructuring GM out of court remains his preferred option".

A few days back, the auto taskforce of the US Federal government had appointed Henderson as the beleaguered auto maker's chief executive, replacing Rick Wagoner.

Pointing out that a clean balance sheet was "not negotiable", the new chief executive said it could very well happen through bankruptcy.

Regarding bankruptcy Henderson said, "there were many people saying 'well, the government would never let that happen' -  well it's pretty clear that's not the case".

"The government said they don't want to run the company," Henderson noted.

GM has already received billions of dollars from the US to shore up its battered fortunes.
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