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GM chief says bankruptcy more likely

GM chief says bankruptcy more likely
GM CEO Fritz Henderson | License Photo

DETROIT, May 11 (UPI) -- General Motors Corp.'s chief executive officer said the odds of the largest U.S. automaker filing for bankruptcy have increased but are not yet a sure bet.

In a Monday morning conference call with reporters, CEO Fritz Henderson said: "Today it's more probable that we would need to resort to a bankruptcy process. But there's still a possibility and an opportunity for it to be done outside of a bankruptcy."

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To avoid bankruptcy, "the task that we have in front of us is large, but we know that we can get it done," The New York Times quoted Henderson as saying.

Henderson said the Treasury Department directed GM to propose creditors accept 10 percent of the company in exchange for $27 billion in debt -- a plan that includes the U.S. government and the United Auto Workers union owning 89 percent of the company.

However, creditors have said they are looking for a larger share, the newspaper said.

Henderson declined to comment on the company's efforts to sell its European operations.

However, three bids have come in for the Hummer brand and GM is talking to two of those bidders, Henderson said, keeping their identities under wraps.

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