Pedro_The_Swift
12th July 2009, 08:26 AM
does this mean the US Gov now has a cheap source of corp cars??:p
Filed under: Government/Legal (http://www.autoblog.com/category/government-legal/), GM (http://www.autoblog.com/category/gm/), Earnings/Financials (http://www.autoblog.com/category/earnings-financials/)
BREAKING: New GM drives out of bankruptcy this morning [*UPDATED] (http://www.autoblog.com/2009/07/10/breaking-new-gm-reportedly-drives-out-of-bankruptcy-this-mornin/)
by Chris Shunk (http://www.autoblog.com/bloggers/chris-shunk/) on Jul 10th 2009 at 8:50AM https://www.aulro.com/afvb/ (http://www.autoblog.com/tag/breaking/)
https://www.aulro.com/afvb/images/imported/2009/07/1071.jpg (http://www.google.com/hostednews/afp/article/ALeqM5gQR5i8HijrvnqbuFNbPj89PfV4ng)
After a scant six weeks in bankruptcy court, General Motors is on its way out of Chapter 11. U.S. Bankruptcy Court Judge Robert Gerber approved the sale of GM's good assets to a new company lead by the U.S. and Canadian governments and the UAW healthcare fund, but gave vested parties four days to file an objection.
After two requests for a stay were denied on Tuesday and an accident victim's request was denied at the last minute on Thursday, all signs point to an exit from bankruptcy within a few days, and this morning, word from the Detroit News is that the company officially emerged from Chapter 11 at 6:30am this morning. CEO Fritz Henderson has called a 9 am press conference this morning, and one can only assume that he will declare the birth of "New GM."
GM has received $50 billion from the US government to keep the mega-corporation out of liquidation. For its troubles, Uncle Sam will receive a 60% stake in the new company. Canada, which pitched in $9 billion, will be 11.7% owners, while the UAW will receive 17.6%. Old GM will receive 10% of the new company to help creditors recoup some money. The "New GM" will be smaller in almost every way, with four fewer brands, a smaller presence in Europe, fewer employees, and a markedly more attractive balance sheet.
[Sources: The Detroit News (http://www.freep.com/article/20090710/BUSINESS01/90710007/1014/rss13); AFP (http://www.google.com/hostednews/afp/article/ALeqM5gQR5i8HijrvnqbuFNbPj89PfV4ng) | Image Source: Bill Pugliano/Getty]
Filed under: Government/Legal (http://www.autoblog.com/category/government-legal/), GM (http://www.autoblog.com/category/gm/), Earnings/Financials (http://www.autoblog.com/category/earnings-financials/)
BREAKING: New GM drives out of bankruptcy this morning [*UPDATED] (http://www.autoblog.com/2009/07/10/breaking-new-gm-reportedly-drives-out-of-bankruptcy-this-mornin/)
by Chris Shunk (http://www.autoblog.com/bloggers/chris-shunk/) on Jul 10th 2009 at 8:50AM https://www.aulro.com/afvb/ (http://www.autoblog.com/tag/breaking/)
https://www.aulro.com/afvb/images/imported/2009/07/1071.jpg (http://www.google.com/hostednews/afp/article/ALeqM5gQR5i8HijrvnqbuFNbPj89PfV4ng)
After a scant six weeks in bankruptcy court, General Motors is on its way out of Chapter 11. U.S. Bankruptcy Court Judge Robert Gerber approved the sale of GM's good assets to a new company lead by the U.S. and Canadian governments and the UAW healthcare fund, but gave vested parties four days to file an objection.
After two requests for a stay were denied on Tuesday and an accident victim's request was denied at the last minute on Thursday, all signs point to an exit from bankruptcy within a few days, and this morning, word from the Detroit News is that the company officially emerged from Chapter 11 at 6:30am this morning. CEO Fritz Henderson has called a 9 am press conference this morning, and one can only assume that he will declare the birth of "New GM."
GM has received $50 billion from the US government to keep the mega-corporation out of liquidation. For its troubles, Uncle Sam will receive a 60% stake in the new company. Canada, which pitched in $9 billion, will be 11.7% owners, while the UAW will receive 17.6%. Old GM will receive 10% of the new company to help creditors recoup some money. The "New GM" will be smaller in almost every way, with four fewer brands, a smaller presence in Europe, fewer employees, and a markedly more attractive balance sheet.
[Sources: The Detroit News (http://www.freep.com/article/20090710/BUSINESS01/90710007/1014/rss13); AFP (http://www.google.com/hostednews/afp/article/ALeqM5gQR5i8HijrvnqbuFNbPj89PfV4ng) | Image Source: Bill Pugliano/Getty]