Despite the provided TARP bailout General Motors is about to file for bankruptcy

General Motors Corp. is expected to request more aid for its restructuring plan it's required to present to the Treasury Department by Tuesday. Previsouly, GM had received a total of $13.4 billion in federally-funded bailout. 

Treasury Department officials believe GM needs at least $5 billion for its restructuring plan, the report said published on the online edition of The Wall Street Journal. Like other automakers, GM has experienced deteriorating sales during the economic downturn. The company announced its plans to cut 3,400 more jobs and its shares have fallen by about 15% in the past three months to $2.50.

 

GM hired bankruptcy lawyers in December and believes it would request government funds for debtor-in-possession financing if bankruptcy occurs. Also, GM might ask for permission to postpone its March 31 deadline for the completion of the restructuring plan. 

 

Another automaker, Chrysler LLC is also expected to ask for $3 billion in additional loans on top of its $4 billion in federal loans. Conversely, Ford Motor Co. has not requested government funds.