Report: GM board won't rule out bankruptcy

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Report: GM board won't rule out bankruptcy
By MarketWatch
Last update: 1:00 p.m. EST Nov. 22, 2008

SAN FRANCISCO (MarketWatch) -- Members of the board of directors at General Motors Corp. may be at odds with the ailing automaker's top executive in their willingness to consider all options, even bankruptcy, according to a published report.

A story in the online edition of The Wall Street Journal, citing people familiar with the matter, said that GM's board -- which in the past has publicly offered Chairman and Chief Executive Officer Rick Wagoner its strong support -- agrees that seeking government funding is the company's top priority but isn't willing to dismiss the possibility of a bankruptcy filing.

Wagoner told lawmakers in Washington last week that GM management thinks bankruptcy protection is not an option for the automaker and the company would focus on convincing Congress to provide financial support.

The Journal reported that in a statement on Friday, the company said its board had discussed bankruptcy but didn't see that as a "viable solution to the company's liquidity problems." A GM spokesman, Tony Cervone, told the newspaper that management is considering doing everything in its power to avoid a filing. Wagoner declined to be interviewed and several board members could not be reached for comment on Friday.

On Friday, GM shares closed at $3.06, up 18 cents, or 6.25%. A year ago, the stock was trading at about $42.

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