Controversial GM Bankruptcy Rumors Gain Steam
"General Motors Corp will need to raise as much as $15 billion in cash to shore up liquidity and bankruptcy is 'not impossible' if the U.S. auto market continues to slump," according to the Merrill Lynch analysis. "Other analysts have suggested GM, whose shares fell to a new 54-year low on Wednesday, needs to raise funds to ride out the downturn in the U.S. auto market through 2009." The London Times notes, "The warning by John Murphy, a Merrill Lynch analyst, follows an 18 per cent fall in GM’s sales last month and a cut in its planned production for the current quarter. The note from Mr. Murphy said: 'Bankruptcy is not impossible if the market continues to deteriorate and significant incremental capital is not raised.'"
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