With a Tuesday deadline looming for General Motors to report to Congress on their plans to return to profitability, Reuters cites a Wall Street Journal report that the automaker is still considering bankruptcy as an option if they do not receive enough federal aid:
 

“One plan includes a Chapter 11 filing that would assemble all of GM’s viable assets, including some U.S. brands and international operations, into a new company,” the newspaper said. “The undesirable assets would be liquidated or sold under protection of a bankruptcy court. Contracts with bondholders, unions, dealers and suppliers would also be reworked.”

Citing “people familiar with the matter,” the story said that GM could also ask for additional government funds to stave off a bankruptcy filing.

The Wall Street Journal says this will essentially be presented as a choice to the government, but either way will likely require government loans. Even if GM does declare bankruptcy, government debtor-in-possession financing will likely be necessary because such financing will be nearly impossible to get in current credit market conditions.