WASHINGTON (Reuters) - The Obama administration is preparing to steer General Motors Corp (GM.N) into bankruptcy next week, The Washington Post reported on Thursday, citing sources familiar with the discussions.
Under the GM draft bankruptcy plan, the company would receive just short of $30 billion in additional federal loans, the newspaper quoted a source as saying.
The figure is a starting point in negotiations between the government and GM and could change as could the timing of a bankruptcy filing, the newspaper reported.
A cash injection that large would boost the U.S. government's investment in GM to nearly $45 billion, the article said.
The government previously indicated it planned to take at least 50 percent of the restructured company and would likely assume the right to name GM directors, the Post said.
The paper said the administration was also preparing to lift another troubled U.S. automaker, Chrysler, from bankruptcy as soon as next week, citing industry sources.
If General Motors files for bankruptcy, as widely expected, its healthy assets will be quickly sold to a new company owned by the U.S. government, a source familiar with the situation told Reuters on Tuesday.
The source, who was not cleared to speak with the media and would not be identified, said the U.S. government would pay for the assets by assuming the automaker's $6 billion of secured debt and forgiving the bulk of the $15.4 billion of emergency loans that the U.S. Treasury has provided to GM.
The government task force overseeing GM and Chrysler restructuring has given GM until June 1 to restructure its operations and prove it can be viable without government aid or face probable bankruptcy.
The company on Thursday reached a sweeping deal on concessions with the United Auto Workers and has given its bondholders until next Tuesday to agree to a plan that would reduce the company's debt.
(Writing by John Crawley; Editing by Peter Cooney and Jackie Frank)
