Treasury tells GM to prepare bankruptcy plans

“Good” company vs. “bad” company?

The Obama Administration is so doubtful of General Motors surviving without major retooling that it’s quasi-ordering the General to prepare for a structured bankruptcy. The announcement is also, of course, another warning shot across the bow of GM bondholders.

At the same time, new GM CEO Fritz Henderson is more committed to the idea than was the deposed Rick Waggoner.

Of course, this ain’t gonna be easy, as the story spells out.

And, from where I sit, Henderson has to also overcome Waggoner’s long-term commitment to the SUV as the salvation of GM, a commitment that he renewed after the recession slashed oil and gas prices.