Thread: New GM. no longer bankrupt--

does this mean the US Gov now has a cheap source of corp cars??


Filed under: Government/Legal, GM, Earnings/Financials
BREAKING: New GM drives out of bankruptcy this morning [*UPDATED]

by Chris Shunk on Jul 10th 2009 at 8:50AM


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; AFP | Image Source: Bill Pugliano/Getty]

They will be a much fitter company by the end of this, they culled something like 4,000 white collar employees not long ago.

The Chevy Volt looks pretty good as well, may be able get them profitable again very soon.

Why do they need so many friggen flags? Isn't one enough?