In Michigan
11:57 am
Tue May 12, 2009

Governor still hopeful GM can avoid bankruptcy

Lansing, MI – Governor Granholm says she still hopes General Motors can avoid bankruptcy court.

She says this is a "critical time" for Michigan as GM negotiates with its unions and its creditors on a deal to keep it out of bankruptcy. She says it should be a last resort, but that there are bondholders that may not agree to the conditions GM set out.

The governor says the idea is to put GM on a stronger course and keep jobs in the state. She says she's confident the Obama administration stands ready to offer more assistance once the automaker proves it has a viable business plan. The administrations rejection of Chrysler's plan sent that company into bankruptcy reorganization.

Granholm also says a condition of U. S. taxpayer assistance should include not exporting jobs to other countries.