Rep Levin:Obama Administration Asked GM To 'Address' Bankruptcy Option
February 17 2009 - 2:27AM
Dow Jones News
U.S. President Barack Obama's administration has told General
Motors Corp. (GM) to "address" bankruptcy as a possibility in a
viability plan due to the government Tuesday, Rep. Sander Levin,
D-Mich., said Monday. "They've been asked to address the issue of
bankruptcy in their plan but not to have that as an alternative
plan," Levin said in a phone interview. "That's my
understanding."
He said he learned of the administration's request from a "very,
very good source" but declined to elaborate.
Levin said he and other industry supporters in Congress maintain
that a bankruptcy filing by a domestic auto maker would be
disastrous to both the auto industry and the broader economy.
The plan that GM is scheduled to submit to the Treasury
Department on Tuesday is supposed to describe how the company will
restructure to ensure its long-term viability.
GM and Detroit rival Chrysler LLC have received the first
installment of a combined $17.4 billion in government loans and
could receive the next installment if their plans pass muster.
A GM spokesman declined comment.
-By Josh Mitchell, Dow Jones Newswires; 202-862-6637;
joshua.mitchell@dowjones.com