General Motors has insisted that going bankrupt is “not an option”.
The American auto giant was forced to release a statement today after market experts predicted the company would file for America’s Chapter 11 bankruptcy protection within days.
“Bankruptcy would not be in the interests of our employees, stockholders, suppliers or customers and we believe speculation about a possible filing is exaggerated and unconstructive,” the GM statement said.
The company’s share price took a battering on Wall Street yesterday. Its stocks were worth just $4.76 each when markets closed, valuing the company at less than $3 billion.
Media reports have been suggesting that GM is on the verge of filing for bankruptcy since its share price dipped below the $10 mark earlier this year.
Currently GM is trying to sell the failing Hummer brand and is streamlining vehicle production worldwide in an effort to cut costs. It blames the “global financial markets and weakening economic fundamentals” for its ongoing crisis.