LANSING – With President Barack Obama’s top official to help distressed auto communities present, Gov, Jennifer Granholm said it was impossible to overstate Michigan’s need for federal assistance as General Motors considers filing for bankruptcy.
Ed Montgomery, named by Obama to oversee aid to auto manufacturing communities, participated in a meeting with Granholm and officials from nearly 100 state and local communities in Detroit.
General Motors must provide an acceptable restructuring plan to the U.S. government by June 1 or file for bankruptcy reorganization under Chapter 11. On Tuesday, the company failed to convince enough of its bondholders to agree to a stock swap, making it more likely that the company would be forced to file for bankruptcy.
Last month Chrysler had to file for Chapter 11.
Granholm told Montgomery that should GM file for bankruptcy, the next 60 days to 90 days would be critical, especially for supplier companies. “Whatever happens in the next week, we know things are going to be dark for awhile,” she said.
“The urgency cannot be overstated,” she said, adding that some way had to be found to help suppliers get through the next three months.
And as the state tries to convert its economy to one based more on alternative energy sources, Granholm said the state will need access to federal funds.
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