THE GENERAL DEMOTED - AT 6:58 A.M. ET:

April 6 (Bloomberg) -- General Motors Corp. is speeding up preparations for a possible bankruptcy filing even as directors seek deeper savings this week to avoid that outcome, people familiar with the plans said.

The bankruptcy readiness focuses on forming a new company from GM’s best assets if necessary, said the people, who asked not to be named because the matter is private. The cost-cut discussions center on how to go beyond GM’s proposal to slash debt by 46 percent and shed 47,000 jobs in 2009, and will include talks with Treasury officials, the people said.

COMMENT:  I suspect that this is leaking out now to soften the blow, and the psychological impact on the economy, when it happens.

April 7, 2009