With its June 1 deadline looming, most analysts are saying that a Chapter 11 bankruptcy filing by GM is almost inevitable. To be fair, these analysts have been saying this ever since the global recession hit. GM has three weeks to complete its restructuring, which includes getting its bondholders to exchange $27 billion in debt for 10 percent of its stock, getting the UAW and CAW to make concessions, closing more plants, killing or selling brands and closing many of its dealerships.

These analysts believe that for GM to accomplish all of these objectives is virtually impossible in such a short duration of time. “I just don’t see how it’s possible, given all of the pieces,” said Stephen J. Lubben, a professor at Seton Hall University School of Law.

As to what GM had to said on the matter, “If we need to pursue bankruptcy, we will make sure that we do it in an expeditious fashion. The exact strategies I’m not getting into today, but we’ll be ready to go if that’s required,” Chief Executive Fritz Henderson said last week. Henderson admitted that bankruptcy is looking more and more likely.

The American automaker has so far reduced its brands to just four – Chevrolet, Cadillac, Buick and GMC. By the end of this month, Saturn is expected to be sold and buyers chosen for Opel and Saab. However, the automaker is still looking for buyers for its HUMMER brand. GM announced just recently that it will kill off its Pontiac brand by the end of 2010.

In regards to its dealerships, the automaker announced that 2700 of its 6246 dealerships will be notified later this week of their termination as the company continues to restructure ahead of its June 1 deadline.

These analysts are not convinced that these efforts by GM are enough to ward off its imminent bankruptcy.

Source: Detroit News, Automotive News