General Motors (GM) to file for bankruptcy by June 1

General Motors Corp. (NYSE: GM) is rumored to be preparing to file for bankruptcy by June 1, this comes after the U.S. Treasury Department directed the largest U.S. automaker to plan for a filing. This news comes from an article from the New York Times on Sunday.

The Times received these rumors from a number of sources, which they did not identify, but they did say that the Treasury Department had spoken to General Motor’s officials and directed them to lay down the groundwork for a “surgical” bankruptcy filing. This filing could last a few weeks for parts of the company.

Those parts of GM are thought to be the good parts, the less desirable parts of the company will remain in court for a longer period of time, these could then be liquidated.

General Motors has now accepted $13.4 billion in federal bailout funds, the automaker has asked for a further $16 billion. Barack Obama has since rejected GM’s initial restructuring plan, the President also forced out GM’s former CEO Rick Wagoner.