GM to Pay Suppliers Pre-Bankruptcy Deadline: Report
General Motors plans to pay its suppliers before the deadline by which it must declare its bankruptcy, according to a report.
In response to uncertainty over whether GM would make creditors whole if it should opt for bankruptcy, the automaker said it will make the payments May 28 instead of June 1, the Wall Street Journal reported.
The Treasury Department has imposed a June 1 deadline for the company to come up with an out-of-court restructuring plan.
GM spokesman Dan Flores told the Journal the move to make the payments to direct-material suppliers came amid a flurry of concern in the industry and from the suppliers, which have struggled as American automakers have come under intense pressure.
However, Flores cautioned that the move shouldn't be read as a direct indication that GM will enter bankruptcy.
GM shares fell 2.5 percent in premarket trading.