General Motors Corp. Chief Executive Fritz Henderson says bankruptcy isn't the company's preferred option, but it's still probable, given the restructuring goals GM must meet to get more government loans.
In a conference call with reporters Friday, Henderson said GM is working on two parallel plans: one that involves bankruptcy and one that doesn't.
GM has already received $13.4 billion in aid, and it must meet strict requirements to cut labor costs and debt by a June 1 deadline.
(Delta Township, MI) – The recession has hit Michigan hard: from the nation's highest jobless rate to daily fears of bankruptcy for the flagship automobile industry and a high home foreclosure rate. Now, some fear business foreclosures may climb. The recession is having an impact on one of mid-Michigan's busiest commercial strips.
General Motors Corp. says its preparing to launch a public bond-exchange offer that would let the company start slashing its debt, even without an agreement from a committee of large institutional bondholders.
The Detroit automaker has been working on a plan to wipe out most of its $28 billion unsecured debt by June 1 to avoid bankruptcy.
Lansing, MI – Lansing, MI (AP) - Michigan's unemployment rate jumped to 12.6% in March, up from 12% the month before.
The higher number is likely to keep Michigan in the spotlight as the state with the nation's worst unemployment rate.
The national unemployment rate in March was 8.5%.
The state Department of Energy, Labor and Economic Development said Wednesday that the weakness in the auto industry along with the national recession have "severely affected" Michigan's labor market over the past year.