Detroit, Michigan – General Motors has not changed its position on bankruptcy and does not plan to take that route, the company said in a statement. The automaker was responding to a story in the Wall Street Journal which suggested the company may be more receptive to bankruptcy due to its auditor’s annual report, which listed court protection as one possible plan of action.
In its statement, the automaker said that “restructuring the business out of court remains the best solution for GM and its constituents. The company has established a clearly-defined plan to restructure its business and restore GM to long-term viability, and GM is aggressively executing that plan through a series of actions outlined in its February 17 viability plan.”
GM said that as a prudent business measure, it has analyzed various bankruptcy scenarios, but firmly believes that an in-court restructuring would carry with it tremendous costs and risks, including a dramatic deterioriation of revenue due to lost sales.