http://youngragingbull.wordpress.com/2009/02/14/%E2%80%9Creport-gm-to-say-%E2%80%98more-aid-or-bankruptcy%E2%80%99%E2%80%9D/ Report: GM to say, more aid or bankruptcy Posted by: youngragingbull | February 14, 2009 SAN FRANCISCO (MarketWatch) General Motors Corp. will offer the government the choice of giving it billions more in bailout money or seeing it file for bankruptcy when it presents a restructuring plan next week, according to a report published Saturday. The online edition of The Wall Street Journal, citing unnamed sources, said the competing choices present a dilemma for the Obama administration, which may fear seeing the industrial icon carmaker fall into bankruptcy and cut more jobs if its refused more aid. The government has already committed $13.4 billion to GM as part of a federally-funded bailout. The automaker is expected to include its call for more funds in a restructuring plan its required to submit to the Treasury Department by Tuesday, though the company isnt expected to include a dollar amount, according to the Wall Street Journal report. However, Treasury Department officials believe GM needs at least $5 billion more in loans to keep operating beyond the first quarter, according to the report. While filing for bankruptcy may be the best way for GM to cut costs and revitalize, if the company chooses that option, it may include politically unpalatable moves to sell off assets and cut more jobs. GM and other automakers have been slammed by a drop-off in car sales as the recession has worsened. GM and Chrysler LLC have asked for and received government bailout money, while Ford Motor Co., like its peers, has also seen sales fall sharply in recent months, but has not asked for aid. Chrysler is also expected to submit a restructuring plan on Tuesday. House Speaker Nancy Pelosi and Financial Services Chairman Barney Frank sent a letter Friday to GM CEO Risk Wagoner and Chrysler CEO Robert Nardelli reminding them that the White House expects to hear about restructuring plans that include a willingness to make tough decisions, but which also will protect American jobs in the future. GM said earlier this week that it plans to cut some 3,400 jobs, or 12% of its U.S. salaried workforce. Shares of the automaker have fallen nearly 15% in the past three months. The shares closed Friday down more than 5% at $2.50. GM believes that if it is forced to seek bankruptcy, it would need government funds for debtor-in-possession financing, because such funding wouldnt be available from private sources, according to the Wall Street Journal report. In other words - even if they do file for bankruptcy, it still costs American taxpayers. In addition, the automaker may also seek permission to extend its March 31 deadline for some restructuring actions by at least several months. While GMs Wagoner previously opposed filing for bankruptcy protection, the CEO in early December hired bankruptcy lawyers and advisers to prepare a contingency plan, the report said.