The South Korean unit of U.S. automaker General Motors(GM) has started making preparations to file for court receivership later this month.

According to industry sources on Friday, GM Korea's financial, personnel and legal bureaus are taking steps to file for court receivership, a sign that GM has effectively given up on the troubled South Korean unit.   

The move is seen as an indication that GM will gradually shut down its production facilities, to leave only the design, research and development, sales and services operations in Korea. 

GM Korea is expected to apply for court protection around April 20th as it has warned. 

Last month, GM Executive Vice President Barry Engle called on the union to accept the company's revised wage offers, warning that GM Korea could go bankrupt in mid-April if wage negotiations for this year fall through.
  
According to Reuters on Friday, GM President Dan Ammann also reaffirmed that common ground must be reached on the long-term financial restructuring of GM’s South Korean auto unit by April 20th.