GM Preps Bankruptcy Filing

Keep your eye out for a fire sale at the local Hummer dealership: The New York Times reports “The Treasury Department is directing General Motors to lay the groundwork for a bankruptcy filing by a June 1 deadline, despite G.M.’s public contention that it could still reorganize outside court.” The hope is for a fast “surgical” bankruptcy. Under one plan, a new company would buy GM’s good brands, while its bad ones would remain with the old company, which would be liquidated over several years. Treasury officials hope the “good” GM could make its way through bankruptcy hearings in as little as two weeks, with $5 to 7 billion in federal aid.