General Motors, with its stock now selling at 1950s era prices, staunchly maintains that bankruptcy reorganization is not an option.

In a statement issued on Friday, October 10, the company said, “Clearly we face unprecedented challenges related to uncertainty in the financial markets globally and weakening economic fundamentals in many key markets, but bankruptcy protection is not an option GM is considering.”

“Bankruptcy would not be in the interests of our employees, stockholders, suppliers or customers, and we believe speculation about a possible filing is exaggerated and unconstructive.”

On Thursday, October 9, GM shares closed at $4.76 down $2.15 for the day. Standard and Poor’s moved the company’s credit rating on watch, warning of a possible downgrade to junk status.

The official S and P statement read, in part, “We believe GM currently has adequate liquidity for at least the rest of 2008 as measured by cash balances and available bank facilities, but the accelerating deterioration in industry fundamentals will be a serious challenge to liquidity during 2009.”

In trading today the stock briefly fell to $4 before jumping to the $5 level and holding there around 10 a.m. The volatility of current trading, however, offers no guarantees.