Credit crunch tests GM's patience

General Motors Corp., burning cash as US sales slide, is being pushed closer to bankruptcy as it waits to learn whether the auto industry will win a new round of government loans.

Only federal aid can prevent a collapse by the largest US automaker, analysts including Buckingham Research Group's Joseph Amaturo said on Monday as the shares plunged to a 59-year low. Reorganizing in court protection also may not be possible, because the credit crunch has dried up financing.

"Strategic bankruptcy is not an option for GM," said Mark Oline, a credit analyst with Fitch Inc in Chicago. "This is an issue of operating or not operating."