It looks like bankruptcy might really be in the cards for General Motors, after all. According to a Reuters report a possible bankruptcy plan is currently being discussed for General Motors .
The plan includes quickly forming a new company of the automaker's most profitable parts, while a group of other units would remain under bankruptcy protection for a longer period, a source familiar with the plans told Reuters.
GM also would seek to have a new deal in place with the United Auto Workers union prior to any bankruptcy filing, the source said.
GM warned earlier that there is a rising chance it could file for bankruptcy by June, as the company has 60 days to reach deeper concessions with bondholders and unions after its previous restructuring plan was rejected by the U.S. government as insufficient.
While the automakers would still prefer to avoid bankruptcy, advisers to both GM and Chrysler LLC have been working to prepare for potential bankruptcy filings that would aim to preserve, or sell off, the best parts of the companies
Although some have feared that bankruptcy proceedings could generate unanticipated ripples the news is also being embraced by others. Tom Gardner, the CEO Motley Fool, thinks bankruptcy is the best option for GM as long as its controlled.
