It is more probable that General Motors could accomplish its restructuring goals in bankruptcy than by avoiding it, according to President and CEO Fritz Henderson.

Speaking in a conference call to reporters this morning, Henderson said it was still a possibility the company could avoid bankruptcy court, but he indicated bankruptcy was the more likely outcome.

GM is working under a June 1 deadline set by the Obama administration to drastically reduce costs, close dealerships, and reach agreements with bondholders and the United Auto Workers Union or face bankruptcy. 

Henderson said it was still premature to start discussing specifics of plant closings while UAW negotiations were ongoing, but added the company would start notifying dealers of its plans later this week.

We will continue to monitor this fast-moving story, reporting here in the Cars blog and also updating advice and news on the Auto Crisis hub.

—Jim Travers