A preliminary report of the due diligence on GM Korea says that the local unit of United States automaker General Motors can avoid massive layoffs and even post a surplus if a comprehensive restructuring plan is implemented.

According to the financial industry on Sunday, the state-run Korea Development Bank, a second-largest shareholder of the troubled automaker, recently sent the preliminary report to that effect to senior government officials for review.

The report said that GM Korea could pull off an overall surplus in its business operations in 2020 if all sides can agree to a comprehensive restructuring plan.

Based on the due diligence, which is being carried out since early March, the report said that GM Korea can avoid large scale layoffs and even reverse the three trillion won in deficits posted over the past three years and post a surplus from 2020.

Government officials said that the report showed that the carmaker is more valuable if it stays open compared to it being liquidated.