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General Motors Corp. stock fell to its lowest level since 1946 as concern intensified that the auto maker could run out of cash and be forced to file for bankruptcy protection.

The stock's decline came as several analysts issued dire reports about GM and the company acknowledged in a government filing it could be at risk of violating the terms of some of its debt if it doesn't steady its deteriorating finances by year's end.

A violation of the debt covenants, GM said in the filing late Friday, would give lenders the right to demand repayment of $6 billion, a sum that potentially could cripple the car maker's ability to stay in business.

GM and sympathetic lawmakers boosted their calls Monday for the federal government to bail out the company. In return for aid, lawmakers in Congress have suggested the government could seek to take a stake in the company, limit executive compensation and require GM to speed the introduction of fuel-efficient vehicles. A GM spokesman declined to say if GM would go along with such requirements.

GM's chairman and chief executive, Rick Wagoner, told the trade publication Automotive News that GM needs financial help before President-elect Obama takes office Jan. 20. But Mr. Wagoner added in the interview that he would not be willing to resign in return for aid. "I think our job is to make sure we have the best management team to run GM. It's not clear to me what purpose would be served" by his resignation, Mr. Wagoner said.

Deutsche Bank analyst Rod Lache said in a report that absent government assistance, "we believe that GM's collapse would be inevitable, and that it would precipitate systemic risk that would be difficult to overcome for automakers, suppliers, retailers and sectors of the U.S. economy."

In Washington, Michigan's congressional delegation sent a letter to Treasury Secretary Henry Paulson urging him to offer low-cost loans to the three domestic car makers from the $700 billion fund set up to help troubled financial institutions.

So far, the Bush administration has declined, pointing out that $25 billion in auto-industry loans are being made available through a program in the Energy Department designed to boost production of fuel-efficient vehicles. Mr. Obama has expressed support for helping the auto makers but hasn't disclosed specifics.

On Monday, GM shares lost nearly a quarter of their value, falling $1 to $3.36 in 4 p.m. New York Stock Exchange trading. That lowered the company's market value to just $2.67 billion.

A large industrial credit insurer, Euler Hermes, canceled insurance protection for suppliers of GM and Ford Motor Co., according to two people familiar with the matter. These people said deliveries from the suppliers weren't covered by insurance in the last two weeks, as the risk increased that the car makers could fail to pay for deliveries.

In its filing late Friday with the Securities and Exchange Commission, GM said if its independent auditors conclude in their year-end review of the company's finances that there is "substantial doubt" about GM's "ability to continue as a going concern" in 2009, the company will be in violation of debt agreements, including a $4.5 billion secured revolving credit facility and a $1.5 billion loan.

That would give the lenders the right to call in the debt. GM said that among factors that could put it in such a state would be if it cannot find new sources of funding or receive substantial proceeds from asset sales.

A GM spokeswoman, Renee Rashid-Merem, said the company "felt that it was prudent to clarify" its situation with the debt agreements "given the status of our liquidity."

GM on Friday reported a $2.5 billion loss in the third quarter, and said it had used up $6.9 billion in cash, bringing its cash reserves down to $16.2 billion. The company has said it needs at least $11 billion to $14 billion to keep its operations going.

—Written by John D. Stoll and Katharina Becker

Wall Street Journal