US to work with GM Corporation ahead of June 1 deadline

The Obama Administration has no plans to push General Motors Corp. into bankruptcy this week and the outcome of the automaker's restructuring efforts may not be known until a June 1 deadline, a source familiar with the situation said last week. Earlier, the Washington Post, citing sources familiar with the discussions, reported that the Treasury Department would steer GM into bankruptcy this week under a plan that would provide the company just short of $30 billion in new federal loans.

A US Treasury spokesman declined to comment.

The Treasury is continuing to work with GM on its restructuring, and while the situation could change, there were no plans for a GM bankruptcy filing this week, the source, who was not authorised to speak publicly about the matter, said.

The government task force overseeing GM and Chrysler restructuring has given GM until June 1 to restructure its operations and prove it can be viable without government aid or face probable bankruptcy.

On Thursday an Obama Administration official said the task force was continuing to work with GM and all of the stakeholders involved.