General Motors board says bankruptcy a real option - report

A story in the online edition of The Wall Street Journal, citing people familiar with the matter, said that GM's board, which in the past has publicly offered Chairman and Chief Executive Officer Rick Wagoner its strong support, agrees that seeking government funding is the company's top priority but isn't willing to dismiss the possibility of a bankruptcy filing.

Wagoner told lawmakers in Washington last week that GM management thinks bankruptcy protection is not an option for the automaker and the company would focus on convincing Congress to provide financial support.

GM, in a statement to the newspaper, said the board has discussed bankruptcy, but said the board did not view it as a "viable solution to the company's liquidity problems."

A GM spokesman told the paper that management is doing everything it can to avoid a bankruptcy filing.

Wagoner, along with chief executives from Ford Motor, and Chrysler, this week went to Capitol Hill to plea for $25 billion in aid from U.S. lawmakers.

On Thursday, Democratic lawmakers demanded that executives provide them with a plan of action in exchange for supporting any bailout.