General Motors Filed for Bankruptcy
Posted by avafx on May 31, 2009
General Motors Corp. the largest automobile manufacturer for 77 years will be filed for bankruptcy. GM has already received $19.8 billion in US Treasury loans. Saturn and Hummer and other 14 unprofitable factories would be closed.
The administration expects the new GM to emerge from bankruptcy in 60 to 90 days. The federal government will have a 60 percent equity stake in the retooled automaker, and 12 percent will be held by the Canadian government.
The U.S. Treasury and GM prepared the way for the bankruptcy filing by getting 54 percent of bondholders to agree to the revised reorganization plan
The Obama administration new GM would emerge armed with vehicles from its Cadillac, Chevrolet, and Buick and GMC units.
Gm will now survive in a market of 10 million of U.S. car sales, down from 16 million. The new board will join the revamped when the GM will emerge from bankruptcy.
