GM says bankruptcy not an option but hires bankruptcy advisers

[RB TexLa]

DETROIT (Reuters) - General Motors Corp hired outside advisers to weigh bankruptcy, but the board determined that a filing was not an option for the struggling automaker, a GM spokesman said on Thursday.

"We said all along that the board had considered bankruptcy and had concluded it was not a viable option," GM spokesman Tony Cervone said.

"The board continues to meet frequently and to weigh all options and has retained appropriate advisers for all contingencies."

GM is lobbying for a share of a $14 billion auto rescue package stalled in Congress and has warned it could run desperately short of cash by the end of this month without an emergency federal loan.

GM Chief Executive Rick Wagoner, who also chairs the automaker's board, has said repeatedly a bankruptcy filing was not a strategic option for the automaker because of the risk it would be unable to reorganize under court protection and would be forced to liquidate instead.

http://biz.yahoo.com/rb/081211/business_us_gm_advisers.html?.v=2