White House Preparing for GM Bankruptcy Within Days

The Obama administration is preparing to move General Motors into bankruptcy as early as next week under the terms of a plan that would give GM tens of billions of dollars more in government financing, the Washington Post reported.

Under the GM draft bankruptcy plan, the automaker would receive just under $30 billion in additional federal loans, a source told the Post, which would up the government's overall investment in the company to nearly $45 billion.

But a source with knowledge of the process and talks told FOX News there is no chance the White House Auto Task Force will "prepare" to take GM into bankruptcy next week. The process is too massive for so quick a move and could require preparations up to the White House's imposed restructuring deadline of May 31, the source indicated.

A large obstacle remains for GM, which must still make an agreement with investors who hold $27 billion worth of company bonds, the Post reported.

FOX Business News reports that the Obama administration is seeking to play down prospects that taxpayers could end up owning most of GMAC, the financing arm of GM.

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