BERLIN, May 16 (Reuters) - General Motors' Opel unit could go bankrupt if competing business plans for the carmaker from Fiat and Magna are both unsuitable, Germany's Economy Minister was quoted as saying.
Germany's hunt for a partner for Opel has boiled down to rival groups Fiat and Magna and the government wants them to present a full plan by May 20.
'If the plans are not suitable and were Opel to face insolvency, then I see little alternative to a controlled bankruptcy,' Economy Minister Karl-Theodor zu Guttenberg told Germany's Welt am Sonntag newspaper.
Italian carmaker Fiat wants a three-way merger with Chrysler and GM's European operations. Austrian-Canadian car parts maker Magna is also interested in Opel, probably together with Russian investors.
Guttenberg has said Germany is discussing plans with U.S. partners about a trustee arrangement if GM were to file for bankruptcy before a deal had been reached on a partner for Opel.
He has outlined an idea whereby a trustee could protect Opel assets from GM creditors while a consortium of banks could provide Opel with bridge financing, until another investor takes it over.
The trustee idea has met some resistance in the United States but German government sources said on Saturday Berlin hoped to overcome this.
(Writing by Paul Carrel; Editing by Ruth Pitchford) Keywords: OPEL GERMANY/ (paul.carrel@reuters.com; +49 30 2888 5214; Reuters Messaging: rm://paul.carrel.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Germany's hunt for a partner for Opel has boiled down to rival groups Fiat and Magna and the government wants them to present a full plan by May 20.
'If the plans are not suitable and were Opel to face insolvency, then I see little alternative to a controlled bankruptcy,' Economy Minister Karl-Theodor zu Guttenberg told Germany's Welt am Sonntag newspaper.
Italian carmaker Fiat wants a three-way merger with Chrysler and GM's European operations. Austrian-Canadian car parts maker Magna is also interested in Opel, probably together with Russian investors.
Guttenberg has said Germany is discussing plans with U.S. partners about a trustee arrangement if GM were to file for bankruptcy before a deal had been reached on a partner for Opel.
He has outlined an idea whereby a trustee could protect Opel assets from GM creditors while a consortium of banks could provide Opel with bridge financing, until another investor takes it over.
The trustee idea has met some resistance in the United States but German government sources said on Saturday Berlin hoped to overcome this.
(Writing by Paul Carrel; Editing by Ruth Pitchford) Keywords: OPEL GERMANY/ (paul.carrel@reuters.com; +49 30 2888 5214; Reuters Messaging: rm://paul.carrel.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.