AP quoted Mr Fritz Henderson CEO of General Motors Corporation as saying that a bankruptcy filing is probable because of the restructuring goals GM must meet to get more government loans, but that is not the company’s preferred option.

Mr Henderson said that GM is working on two parallel plans: one that involves bankruptcy and one that doesn't. He added that GM will need more government aid in the second quarter, although the timing has yet to be decided.

He added that the decision to file for bankruptcy would be made with the Treasury Department and GM’s board of directors, but the government is not pressuring GM to file. If GM does file for bankruptcy, speed is important. GM would seek agreements with creditors and union before filing, or go through a fast in court process.

Mr Henderson said that GM has not yet launched intensive discussions with its bondholders. Talks with the United Auto Workers are second in line to Chrysler which faces an April 30th 2009 deadline to restructure and forge an alliance with Italy’s Fiat Group.

Mr Henderson emphasized that GM's restructuring plan calls for the automaker to keep four core brands Chevrolet, Cadillac, GMC and Buick adding that GMC and Buick are highly profitable. GM expects final bids from three potential Hummer buyers by next week.

(Sourced from Associated Press)