by Calculated Risk on 2/14/2009 11:48:00 AM

From the WSJ: GM to Offer Two Choices: Bankruptcy or More Aid

General Motors Corp., nearing a federally imposed deadline to present a restructuring plan, will offer the government two costly alternatives: commit billions more in bailout money to fund the company's operations, or provide financial backing as part of a bankruptcy filing...

GM will argue it needs the additional government funds to stay out of bankruptcy court, people familiar with the matter said. At the same time, the company -- which previously had dismissed suggestions that it might need to file for bankruptcy -- has moved closer to such a prospect.

It looks unlikely that GM will have a plan ready by Tuesday, and will ask for an extension. No word from Chrysler, but a bankruptcy has to be likely.