"Bankruptcy Considerations-In order to be prepared for events possibly
precipitating a bankruptcy filing (for example, unsuccessful bond
exchange or VEBA negotiations), the Company continues to evaluate its
in-court restructuring options as part of contingency planning
activities. The Company believes that the impact of a bankruptcy
filing on its business would be substantial, on both wholesale (GM to
dealers) and retail (GM dealer to customer) levels, as discussed in
the February 17 submission.
General Motors continues to strongly believe that out-of-court
restructuring provides the highest value outcome for its customers and
this country long term. However, if the changes needed for long-term
restructuring cannot be obtained out of court, the Company is prepared
and would consider in-court options. Such options would be enhanced by
the Administration’s commitment to back GM customer warranties, and to
provide support for a rapid emergence from any in-court process.
Availability of adequate financing on acceptable terms to GM’s
customers, dealers, distributors and suppliers to enable them to
continue their business relationships with the Company;
Financial viability and ability to borrow of the Company’s key
suppliers, including Delphi’s ability to address its underfunded
pension plans and to emerge from bankruptcy proceedings;
GM’s ability to sell, spin off or phase out some of the Company’s
brands as planned, to manage the distribution channels for the
Company’s products and to complete other planned asset sales;"
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