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General Motors Corp. (GM) still hopes to avoid a bankruptcy, but has yet to achieve key goals toward completing an out-of-court restructuring, interim Chief Executive Fritz Henderson said Friday.

Negotiations with GM's bond holders and its union have been slow going, while the company races to offload several assets - from money-losing brands to a factory in France.

GM has taken its AC Delco parts business off the market after the company was unable to get enough cash for the business, Henderson said. He said GM, which put AC Delco up for sale in October, received much interest in the business but that "we weren't going to get the value for the business."

Locked down credit markets and sinking sales have complicated GM's efforts to shed liabilities from its balance sheet.

Though GM has yet to announce deals on its many asset sales, Henderson said the company has potential bidders for its Hummer truck brand, its European Opel unit and a transmission plant in Strasbourg, France.

Meantime, GM expects to need around $4.6 billion in additional loans in the second quarter, which is what the company said in February it would need to stay afloat. He said U.S. Treasury has not yet approved additional funding.

GM faces a June 1 deadline to convince the Obama administration it has a workable restructuring plan or file for bankruptcy.

As the company scrambles to slash costs and get concessions from bond holders and its union in hopes of avoiding bankruptcy, GM also is strategizing a Chapter 11 survival plan.

The bankruptcy turnaround GM is considering would split the company in two parts - one comprised of desirable assets such as Chevrolet and Cadillac, and the other made of liabilities such as health care obligations to retirees and the money-losing Saturn brand.

"We're working to make sure Treasury is comfortable and confident we will accomplish our goals," Henderson said in a conference call with media to update GM's progress. Henderson said progress in talks with the United Auto Workers and bond holders are proceeding slowly.

The UAW is more focused on negotiation with Chrysler LLC, facing a tighter government-imposed deadline than GM, he said. Meantime, a committee representing bond holders is awaiting a deal with the UAW to decide how to proceed.

The auto maker is considering a bond exchange offer in which investors would get only shares in exchange for bonds under the company's reorganization plan. An earlier offer would have included both cash and equity in a restructured GM. To have the offer complete by June 1, GM would need to launch the debt exchange by the end of the month.

Henderson said GM will make more job cuts to its hourly and salaried workforce in the coming weeks and that the company intends to make its revised restructuring plan available to the public.

-By Sharon Terlep, 248-204-5532; sharon.terlep@dowjones.com.