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GM CEO: Bankruptcy Likely; Firm May Leave Detroit

Reuters [1]
Tuesday, May 12, 2009

General Motors is open to considering moving its headquarters from Detroit, selling off U.S. plants and even renegotiating parts of its restructuring plan with its major union, the new chief executive said Monday.

CEO Fritz Henderson, on a conference call with reporters, said it was more probable that GM [GM 1.44 -0.17 (-10.56%) ] was headed for bankruptcy by June 1—the U.S. government-imposed deadline for the automaker to restructure or face bankruptcy.

“It’s more probable that we would need to accomplish our goals in a bankruptcy,” Henderson said. “There’s still a chance for it to be done outside a court proceeding.”



A move by GM to leave Detroit would represent another blow for the economy of a region already reeling from the bankruptcy of Chrysler and the sharp downturn in auto manufacturing.

GM purchased its glass-towered headquarter building known as Detroit’s Renaissance Center last year for $625 million.

Full article here [1]