US experts say GM is bound to go bankrupt

Beijing Time May 19 News, according to foreign media reports, with the June 1 General Motors completed the deadline for the reorganization plan approaching, U.S. experts believe that GM will follow the footsteps of Chrysler, to file a bankruptcy application.　　Under U.S. government rules, GM must cut its $27 billion trillion debt by June 1, reach a cost-cutting agreement with the UAW and cut some 1600 U.S. dealerships. "I think GM's bankruptcy is inevitable," said Erich Merkle, an independent analyst at the auto industry. I don't know how they can get out of bankruptcy. Peter Kaufman, President of Gordian Group LLC and director of restructuring and mergers, said: "The only way GM will not have to go bankrupt is for the U.S. government to accept that no matter how much the GM can convert its bonds into equities." GM had said it had to convert 90% of its $27 billion trillion of bonds into shares, or the company would have to file for bankruptcy. (Ning String)