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U.S. Treasury plans no GM bankruptcy next week: source
May 22, 2009 / 4:52 AM / 8 years ago

U.S. Treasury plans no GM bankruptcy next week: source

WASHINGTON (Reuters) - The U.S. Treasury Department has no plans to push General Motors Corp into a bankruptcy filing next 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 early on Friday.

<p>General Motors of Canada vehicles are shown at a dealership in Toronto May 20, 2009. The U.S. Treasury Department has no plans to push General Motors into a bankruptcy filing next 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 early on Friday. REUTERS/ Mike Cassese</p>

Earlier, the Washington Post reported that the Treasury would steer GM into bankruptcy next week under a plan that would provide the company just short of $30 billion in new federal loans, citing unnamed sources.

A U.S. Treasury spokeswoman 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 next week, said the source, who was not authorized to speak publicly about the matter.

Reporting by David Lawder, editing by Jackie Frank

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