GM chief, Treasury official call for quick exit from bankruptcy
01 Jul 2009
A senior member of the US Treasury department's auto task force called for a quick exit to General Motors from Chapter 11 to boost consumer confidence.
"A rapid emergence from bankruptcy creates the highest probability of avoiding the catastrophic and expensive meltdown in GM auto sales that virtually all industry observers predicted," Harry Wilson, a senior member of the Treasury said, adding that the Treasury "cannot make an open-ended commitment to GM that Treasury will continue to fund GM's operations" if the car company continues in bankruptcy.
Wilson noted that a speedy exit from bankruptcy court would enable the 'new GM' to begin making cars as quickly as possible.
GM president and CEO Fritz Henderson also made a similar appeal before the bankruptcy court on Tuesday saying that the Treasury could stop financing GM's restructuring if a sale of the automaker's best assets is not approved by July 10.
He further warned that it would trigger a liquidation of the company.
"Business is doing better" at GM, Henderson said, as customers, suppliers, workers and others anticipate the completion of a successful deal.
