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DETROIT — General Motors should file for bankruptcy rather than taking government money, hedge-fund manager Bill Ackman said.
“It has been hamstrung for years because it has too much debt and it has contracts that are uneconomic,” Ackman, of the Pershing Square Capital Management LP hedge fund, said Monday in a taping of the Charlie Rose show. “The way to solve that problem is not to lend more money. They should do prepackaged bankruptcy.”
GM is petitioning the U.S. government for aid after saying last week it may not have enough cash to operate for the rest of this year. A bankruptcy would leave bondholders in control of the company in exchange for forgiving some debts, Ackman said.
Bloomberg News
