U.S. Treasury plans no GM bankruptcy next week

WASHINGTON (Reuters) - The U.S. Treasury Department has no plans to push General Motors <GM.N> into a bankruptcy filing next week and the outcome of the automaker's restructuring efforts may not be known until a June 1 deadline, a source familiar with the situation said early on Friday.

Earlier, the Washington Post reported that the Treasury would steer GM into bankruptcy next week under a plan that would provide the company just short of $30 billion (18.9 billion pounds) in new federal loans, citing unnamed sources.

A U.S. Treasury spokeswoman declined to comment.

The Treasury is continuing to work with GM on its restructuring, and while the situation could change, there were no plans for a GM bankruptcy filing next week, said the source, who was not authorized to speak publicly about the matter.

(Reporting by David Lawder, editing by Jackie Frank)

Article Published: 22/05/2009