General Motors is considering selling its healthy assets to a U.S-owned, newly created company while dumping the rest of its assets into bankruptcy, reports Reuters. The new company would honor the claims of GM’s secured lenders. The not-so-healthy GM assets would stay in bankruptcy protection to pay off other claims. GM has about $6 billion in secured debt. The White House is considering giving stakes in the new company to GM’s union and bondholders, while also extending a credit line to the company and forgiving the $15.4 billion in loans they’ve already forked over. If GM doesn’t restructure by June 1 it will follow Chrysler into bankruptcy.
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