General Motors has reported a net earnings loss of USD 6 billion in the first quarter as it faced the prospect of bankruptcy saddled with mounting debt. Excluding special items, it reported an adjusted net loss of USD 5.9 billion as compared to a USD 381 million loss.

GM also said that it spent USD 10.2 billion more cash than it took in from January through March 2009, mainly because revenue dropped by a staggering USD 20 billion or 47%.

GM said that its first quarter revenue plunged 47% YoY to USD 22.4 billion from USD 42.4 billion in the year ago quarter. It added that "The drop in revenue was primarily due to GM's production volume decline of 903,000 units or approximately 40% on a global basis YoY."

It may be noted that debt ridden GM has taken more than USD 15 billion in government loans and faces a June 1st 2009 deadline to complete a major restructuring plan or force to follow its rival Chrysler into bankruptcy court. GM faces an almost impossible list of restructuring tasks to complete before the June 1st 2009 deadline. It must get new cost cutting agreement with its unions, complete a debt for stock swap with 90% of its bondholders, close factories and cut jobs to prove to the government it can repay the loans.