May 28, 2009 / 1:33 AM / in 9 years

GM issues paychecks early amid bankruptcy fears

DETROIT (Reuters) - General Motors Corp paid about 90,000 U.S. employees three days early this week in an effort to reassure them that their wage payments would not be affected by any bankruptcy filing, a spokesman said.

GM employees would normally have been paid on Friday. Instead, the automaker issued checks on Tuesday, spokesman Tom Wilkinson said.

“It was done to reassure employees worried about bankruptcy,” he said.

GM does not expect its payroll payments to be affected by any bankruptcy filing, Wilkinson said.

Earlier on Wednesday GM said a bond exchange offer had failed to win support from investors holding $27 billion of its debt. Analysts said that set the stage for a bankruptcy filing by the end of the month.

GM has also pulled forward to May 28 a payment to its roughly 1,500 parts suppliers that would have been made on June 2, company representatives have said.

Reporting by Kevin Krolicki; Editing by Richard Chang

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