GM hires bankruptcy lawyers - report

Wall Street Journal says the troubled automaker has approached a New York law firm to consider whether GM should file for bankruptcy.

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NEW YORK (CNNMoney.com) -- General Motors has reportedly hired bankruptcy lawyers and restructuring consultants as lawmakers continue to debate the terms of a possible bailout of the ailing automaker.

The Wall Street Journal reported late Thursday that GM has tapped Harvey Miller of New York law firm, Weil Gotshal & Manges LP, to handle any potiential bankruptcy filing. Miller is a "bankruptcy veteran," according to the Journal.

GM has also reached out to "restructuring veterans" Jay Alix of Questor Management Company, Evercore Partners' William Repko, and Blackstone Group's Arthur Newman, the Journal said.

The reports come as Senate lawmakers consider a $14 billion bailout package that would provide loans for General Motors, Chrysler and Ford Motor (F, Fortune 500).

GM (GM, Fortune 500) has been burning through cash as sales plummet and credit remains tight. The automaker has said it will run out of operating capital next year if the government loans are not approved.

Last week, the Journal reported that Chrysler LLC hired bankruptcy law firm Jones Day. To top of page

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