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The once unthinkable has finally happened. General Motors Corp. filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York with the backing of the U.S. government on Monday at 8 a.m. EDT. Judge Robert Gerber will oversee the bankruptcy proceedings, which the Obama administration hopes will be fast-tracked. President Obama is expected to address the nation at 11:55 a.m., and GM CEO Fritz Henderson will discuss the bankruptcy of the Detroit icon at 12:30 p.m., according to widespread media reports. Additionally, Henderson is expected to make media rounds starting with CNBC at 1:30 p.m. Meanwhile, Washington was abuzz Sunday about the bankruptcy, which has been expected for months. "There is still plenty of pain to go around, but I'm confident this is far better than the alternative," The Associated Press quoted Sen. Carl Levin, D-Mich., following a briefing from the president. "It's a new beginning, it's a rebirth, it's a new General Motors." The prepackaged bankruptcy reportedly will leave the U.S. government with a 60% GM stake in exchange for $30 billion, while the Canadian government will put in $9.5 billion for a 12% stake. The company will lay off 21,000 workers, or about 34% of its payroll, and jettison 2,600 dealers, according to the AP. Additionally, it will close 11 plants and idle three more. For a complete timeline of the events that led to the bankruptcy, see The Deal's GM Dealwatch. - Matthew Wurtzel
CategoriesComments
From: James Raider,
We are watching the slow death of an American industry. Its best days are unfortunately behind it. http://pacificgatepost.blogspot.com/2009/05/detroit-icons-ending-more-than-era.html Many of us are in mourning for an era that won’t return.
Posted on:
June 2, 2009 2:19 AM
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Interesting to see the list of creditors and the amounts. Thanks for the post.