AP quoted Mr Kent Kresa interim chairman of General Motors' board as saying that bankruptcy remains a possibility and the automaker needs quick agreements with the United Auto Workers union and bondholders to avoid that fate.

Mr Kresa said that General Motors Corporation needs concessions from its union and debt holders or the company will be forced into bankruptcy.

GM said that most directors will likely be replaced at the company's annual meeting in August 2009. Working with the government, Mr Kresa said that he expects to have significant leeway to find new board members.

It may be noted that the Obama administration is giving GM until June 1st 2009 to restructure.

(Sourced from www.ap.org)