GM files for Chapter 11

[KissMyWhtSS]

The die is cast: General Motors has filed for bankruptcy. As expected, the automotive giant filed for Chapter 11 bankruptcy protection this morning in a New York court, listing $82 billion in assets and $172 billion in debts.

As we told your earlier, the century-old company will gain extensive assistance from the U.S. government, the former chipping in $30 billion in financing (GM has already received over $19 billion), that latter of which is expected to work extensively with the automaker as it goes through bankruptcy proceedings that will see the company's assets split into "Good GM" and "Bad GM," the latter of which will be liquidated.

According to the Detroit Free Press, the Obama administration has said that it will manage its holdings in GM (the government gets a 60% stake) in a "hands-off" non-interference fashion, with no White House employees serving on the board or being employed by the automaker. However, Capitol Hill will get the chance to influence company proceedings, as it will vote on core issues of governance that include "selecting the company's board of directors and major corporate transactions." While that may not equate to day-to-day management decisions, the government will certainly have the ability to influence company plans through appointments and such decision-making processes.

http://www.autoblog.com/2009/06/01/o...11-bankruptcy/

[Z28pr0jekt]

and entertainingly enough, their stock is up 30 cents

[Fastbird]

Catching a quick rebound before it goes to nil.

Saw this coming from a mile away. The suck factor is that now the american taxpayers are footing the bill for a multi-BILLION dollar bailout for GM (and Chrysler) for nothing. And GM, instead of sucking it up and just filing in the first place, has now by means of the bailout given it's self control over to the UAW and worse, the government.

[K-Dawg]

I'm very confident Obama and his buddies can repair the auto industry. We wouldn't want those pesky terrorist buying foreign vehicles.

On a serious note. Sucks for the american auto makers, but hopefully hitting rock bottom will show them the way.

[LT1RUNNER]

Sometimes I find the amount of money they use unbeleiveable (sp).