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GM prepares for Chapter 11 bankruptcy protection

General Motors is in “intense” and “earnest” preparations for a possible bankruptcy filing, according to an industry insider.

The rumoured plan is to split GM into a new company that's made up of its successful units and an old company made of of its less-profitable divisions.

GM declined to comment. Fritz Henderson, GM’s chief executive, has said that the company would prefer to restructure out of court but could go into Chapter 11 bankruptcy protection if needed.

CBNC has done a video interview with Chris Preuss, vice president of communications for General Motors Europe to discuss the future of the European operations. To view the video click here.

GM has until the end of May to submit new plans to the US Treasury after President Obama granted the company a deadline extension following the original restructuring plans GM submitted which he deemed “unsatisfactory”.

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