U.S. senator: GM to meet restructuring plan date

WASHINGTON (Reuters) - General Motors Corp CEO Rick Wagoner met congressional allies and other key members on Tuesday and one senior Democratic senator said the automaker was making progress on a government-required restructuring plan and will meet next week's deadline for submitting it.

Sen. Carl Levin also said any bankruptcy filing by a U.S. automaker would be a "nonstarter" and would jeopardize the industry.

The Treasury Department has retained law firms with bankruptcy experience and an investment bank to advise officials on GM's taxpayer-backed restructuring.

"Bankruptcy is not an option because you lose your industry. People are not going to buy cars if they are not confident the warranties will be good and the dealers will be there," Levin told reporters. "It's just a nonstarter and doesn't do anything for you."

GM and Chrysler LLC , which like GM received government bailout money in December and is also readying a turnaround plan by February 17, have both previously ruled out bankruptcy.

But some outside analysts argue they lack the leverage necessary to win concessions from bondholders and labor without the threat of a Chapter 11 filing.

The Obama administration, which will review the restructuring plans, must decide by March 31 whether GM and Chrysler would be commercially viable if their restructuring were permitted to proceed.

If not, the government could require immediate repayment of bailout funds. GM has received $9.4 billion of a promised $13.4 billion so far, while Chrysler has received $4 billion and is seeking $3 billion more.

GM chief executive Wagoner held separate meetings on Tuesday with several Democratic lawmakers, including Levin, Sen. Debbie Stabenow and Rep. Sander Levin all of Michigan, and Commerce Committee Chairman Jay Rockefeller of West Virginia.

Wagoner also met Energy and Commerce Committee chairman Rep. Henry Waxman of California, and Massachusetts Rep. Ed Markey, chairman of the Select Committee on Global Warming.

A source with knowledge of at least one of the meetings said Wagoner's intention was to convey to Congress that GM was on a path to viability and still planned to meet stricter government fuel efficiency standards that take effect in 2011.

Wagoner made no substantive comments to reporters on GM's restructuring options. He said the turnaround plan was moving forward and was comprehensive.

Levin said any discussion about more aid to GM and Chrysler depended on what their plans looked like next week and whether they could obtain at least interim commitments from bondholders and labor for new concessions.

The Treasury Department has said it would make no decisions on industry restructuring until after turnaround plans were submitted.

Alan Reuther, legislative director of the United Auto Workers, told Reuters there is "some ambiguity" about concessions and hopes the government will soon appointment a trustee or "car czar" to clear up important questions.

"Our bargaining team is meeting with the companies (GM/Chrysler) and working through what modifications would be possible," Reuther said.

Lawmakers said a decision by the Obama administration on a czar could come within days.

(Editing by Andre Grenon)