GM's Henderson Says Bankruptcy 'More Probable', But Not Certain

Shares of General Motors (NYSE: GM) are down more than 9% today following not-so-reassuring comments made by CEO Fritz Henderson on a conference call earlier. The stock most recently traded at $1.45.

The recently-promoted exec updated shareholders and analysts this morning, with the major takeaway being that bankruptcy at the automaker is "more probable" given the large tasks management will need to complete before the Obama administration's June 1st deadline. Despite the concerning tone, Henderson suggested that "...there is still an opportunity for this to be done out of court" if GM can "move fast".

Issues which will need to be addressed prior to the deadline include: smoothing of the planned bond exchange, agreements with union officials, possible deals for the automaker's Hummer, Saab and Saturn brands, as well as the phase out of its Pontiac brand, and the looming closure of up to 2,600 dealers. Additionally, Henderson also indicated on today's call that GM has considered moving its headquarters in Detroit's Renaissance Center in order to cut costs.

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