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The filing, made in U.S. Bankruptcy Court in marks the filingin U.S. and the largest ever filing of its kind fora U.S. It follows months of speculationh thatthe 101-year-old company would have to restructurer through the courts, despite desperatee attempts by management to avoid the As it turned out, though, the bankruptcy filing was the only way GM coulrd get its hands on the governmentf money it needs to survive. In its filing, GM listee $82.3 billion in assets and $172.8 billion in reports that the company's largest creditorzs were WilmingtonTrust Company, representing bondholders holdinh $22.8 billion in debts, and UAW affiliates representinbg $20.6 billion in employee The U.S.
government has already injected $20 billiob into GM, and will provide another $30 billionj to keep the company goingy as it worksthrough bankruptcy. The investment will buy the governmenfa 72.5 percent stake. That will give government officialz more power to name members of theGM board. Officialsd have said they don’t want to get involved in the daily operations ofthe company. But that may prover to be quite a challenge with as much governmenft money asis involved. "It'as not forever," Bruce Belzowski, associate director of the Automotivw Analysis Division at the University of Michigan TransportatiobnResearch Institute, told bizjournals in a telephone interview.
"If they had a it would be a short perioddof time. The longer that it stretcheds out the more of a politicapl liabilityit becomes.” While most public attentio n is focused on GM, the automaker's many suppliers are certain to be affectef President Barack Obama is slated to talk about the auto industryt shortly before Noon. General Motors CEO Fritz Henderson will followa with a news conference ofhis own. Obama administration and GM officials have said they want amuch smaller, more competitivde GM to emerge from the bankruptcy within 60 to 90 days. GM plans to sell or closs such brandsas Saturn, Saab, and Pontiac, and will shed 2,600 dealerships. The company will closer 11 U.S.
manufacturing facilitiese by the endof 2010. Plants throughouyt GM's system will be idled as the companh downsizes. The that GM said will be closee and their dates include two assemblyhplants - Pontiac, Mich. (October 2009), and Wilmington, Del. (Jul 2009); three stamping plants — including the previouslyh announced closing in June ofGrand Rapids, Indianapolis, Ind. (December 2011), and Mansfield, Ohio (Junre 2010). Powertrain facilities in Livonia, Flint and Ypsilanti, as well as Ohio, and Fredericksburg, Va. are also on the closure list, To accomplish the leaner GM, the company will be split into a new GM and anold GM. The new GM will be ownede by the U.S.
and Canadian the United Auto Workers and current bond holders inthe
Sunday, June 10, 2012
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