As Chrysler goes, will GM follow suit?

The signs of GM going bankrupt were clearly evident yesterday after the company submitted a filing with the U.S. Securities and Exchange Commission.

In the report, the company formally acknowledged bankruptcy is a likely outcome if cannot resettle its debt and renegotiate its terms with the United Auto Workers by June 1.

On page 7, though, GM says that relief "may include seeking bankruptcy court approval for most or substantially all of our assets pursuant to Section 363(b) of the U.S. "

GM has already received $15.4 billion in federal loans, but they can carry out their restructure work under court protection. Its dealers have already been notified that they will no longer be able to sell GM vehicles.

Meanwhile GM has to see country by country where it can still survive and where it will have to file for bankruptcy. In the US GM is also exploring the possibility of moving out of Detroit, which will result in loss of jobs for sure.