GM Affirms April 20 Deadline for Bailout Plan in Korea

General Motor Co. reiterates that its business in South Korea will likely file for bankruptcy protection if it fails to reach agreement on a financial restructuring package by April 20.

“Everybody has got to come to the table by next Friday,” President Dan Ammann tells Reuters.

GM has said it is willing to invest $2.8 billion in the unit and commit to new product programs if it can win labor concessions, gain tax breaks and obtain aid from the government-controlled Korean Development Bank. GM also has proposed converting $2.7 billion in GM Korea debt into equity.

The unit could continue to make cars under bankruptcy restructuring. But it isn’t clear where it would get enough funds to operate. The company lacks the funds to pay workers who agreed to quit under a voluntary severance plan. GM Korea also said earlier this week it can’t pay worker bonuses and might not meet month-end payroll.