Automaker plan would split the company into profitable and less-profitable divisions.
April 7, 2009: 11:24 AM ET
Link: http://money.cnn.com/2009/04/07/news/companies/gm_prep_bankruptcy.reut/index.htm?postversion=2009040711
NEW YORK (Reuters) -- General Motors Corp. is in "intense" and "earnest" preparations for a possible bankruptcy filing, a source familiar with the company's plans told Reuters Tuesday.
A plan to split the company into a new company made up of the most successful units, and an 'old company' of its less-profitable units is gaining momentum and is seen as the company's best configuration for the future, said another source familiar with the talks.
The sources asked for anonymity saying they were not authorized to speak on the record.
GM (GM, Fortune 500) Chief Executive Fritz Henderson has said the company prefers to restructure out of court but could go to court if needed. GM declined to comment further.
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