GM seen posting deep loss

By Kevin Krolicki

DETROIT (Reuters) - General Motors GM.N is expected to report a deep loss on Thursday for the first quarter in its last earnings report before the deadline for a restructuring that would wipe out current shareholders.

GM is facing a government-imposed June 1 deadline to reach agreements to overhaul its operations and cut more than $40 billion (26.4 billion pounds) in debt.

GM said in a statement on its website that global vehicle sales fell 28 percent in the first quarter, led by a 47 percent decline in North America.

The quarter also coincided with GM's failure to win new federal backing for a turnaround plan that the Obama administration's auto's task force concluded was too slow-moving and too cautious to succeed.

In its punishing first quarter, the Obama administration ousted former Chief Executive Rick Wagoner.

Analysts, on average, expect GM to post a first-quarter loss of $11.05 per share before items, far wider than the 62 cent per share loss a year earlier,

Revenue is expected to fall by about half to $21 billion, according to Reuters Estimates, which reflects sharply lower production.

Creditors are looking beyond GM's results, focussing on whether it succeeds in winning debt concessions from its bondholders and the United Auto Workers union, analysts said.