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GM chief says bankruptcy 'more probable'

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GM chief says bankruptcy 'more probable'

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The boss of General Motors has warned that it is becoming more probable that the car maker will need to seek bankruptcy protection from its creditors as early as June the first.

That is the deadline set by the US government for Chief Executive Fritz Henderson to complete restructuring plans. Henderson is trying to ratchet up the pressure on GM’s bondholders and the main car workers’ union to agree to accept new shares in exchange for debt. GM owes them 27 billion dollars (19.8 billion euros). Asked about GM Europe, Henderson said a “number of parties” are interested in buying Saab, but he would not comment on the possibility of Italy’s Fiat taking a majority stake in Opel and Vauxhall.