GM going to bankruptcy

With at least 5 of the 60 days already gone in which GM has to convince bondholders and the UAW to accept concessions, the fate of a “quick-rinse” bankruptcy cleaving GM into a “bad” liquidated and a “good” surviving company appears increasingly likely.

Former CEO Wagoner had held out against bankruptcy all along claiming it would lead to loss of the company. Henderson however takes a more open-minded view. He said “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.”

The chief executive of General Motors Corp. does not rule out the possibility of bankruptcy, the Financial Times reports Saturday, citing GM's new CEO Fritz Henderson.

According to the report, Henderson is now much more open to bankruptcy despite saying that restructuring is his preferred option.

This is not how Fritz Henderson wanted to become GM's CEO.

As the Detroit automaker stands at the brink of bankruptcy, workers are "shocked" by the abrupt departure of former CEO Rick Wagoner, Henderson told the Free Press in an interview Wednesday.

Henderson, who has spent 20 years at GM, talked about taking over the troubled company from a man that he worked under for "the better part of my career."

President Barack Obama believes a quick bankruptcy is a likely way to reshape ailing automaker General Motors Corp. into a competitive company, according to a report Wednesday.

Obama's preferred option is for a significant restructuring of GM without a bankruptcy "if at all possible," Bloomberg News reported, citing a White House official.