US would facilitate GM bankruptcy, if needed -Geithner

WASHINGTON, May 8 (Reuters) - The U.S. government would facilitate a bankruptcy at General Motors Corp GM.N, like it did with Chrysler LLC, if its restructuring effort falls short this month, U.S. Treasury Secretary Timothy Geithner told Reuters on Friday.

"There is a range of ways to achieve this. You saw what we did in the Chrysler context as one way to do it and if that proves necessary in the GM context, we'll do that," Geithner said in an interview. "But we're not at the point where we need to make that judgment yet."

Geithner said in a separate interview with PBS's Newshour program the administration is "quite confident now that we're going to be able to put together something" that would allow GM to survive and be viable.

GM is trying to overhaul its business by a government-imposed June 1 deadline but has recently run into steeper obstacles with debtholders over a proposed equity exchange and with labor over planned production cuts.

GM is trying to cut more than $40 billion in debt and secure concessions from the United Auto Workers. Talks with the UAW began this week.

Many analysts believe GM's problems are too complex to be dealt with out of bankruptcy and the company's chief executive, Fritz Henderson, has said the automaker would file for bankruptcy if it fails to win necessary givebacks.

Peter Kaufman, restructuring expert and president of New York investment bank Gordian Group LLC, said GM would most likely follow Chrysler into bankruptcy.

"This is not playing by the rules, but the government has shown it's not terribly interested in playing by the rules," Kaufman said. "I think this will embolden the government to do what they're already contemplating for GM."