Report: GM preparing to file for bankruptcy by June 1st

by Sundeep Kothari

Atlanta Georgia Bankruptcy Attorney

GM preparing to file for bankruptcy by June 1, 2009

The New York Times is reporting that GM may file for bankruptcy by June 1, 2009. This would be a pre-packaged bankruptcy, meaning that creditors would agree to terms prior to filing. The aim of this bankruptcy would be to divide GM into two parts, a “good” part and a “bad” part. The good part would emerge quickly out of bankruptcy, while the bad part would stay in bankruptcy for a longer period of time. Bondholders are expected to object to any bankruptcy filing.