General Motors files Chapter 11 - Pacific Business News (Honolulu):

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once the world’s biggest auto maker, protection earlyt Monday, under which the U.S. government will become GM’s larges t shareholder. The filing, made in U.S. Bankruptc Court in Manhattan, markas the largest ever filing of its kind fora U.S. It follows months of speculation thatthe 101-year-olxd company would have to restructure throughb the courts, despite desperate attempts by managemen to avoid the move. As it turned out, though, the bankruptcy filing was the only way GM could get its handa on the government money it needsto survive. In its GM listed $82.3 billion in assets and $172.8 billion in debts.
reports that the company's largest creditors were Wilmingto nTrust Company, representing bondholders holding $22.8 billionj in debts, and UAW affiliateas representing $20.6 billion in employee The U.S. government has already injected $20 billion into GM, and will providwe another $30 billion to keep the companh going as it worksthrough bankruptcy. The investment will buy the governmenta 72.5 percent stake. That will give government officials more powe to name members of theGM board. Officialsz have said they don’t want to get involved in the dailg operations ofthe company. But that may provr to be quite a challenge with as much government moneu asis involved.
"It's not forever," Bruces Belzowski, associate director of the Automotive Analysis Divisioj at the University of Michigan TransportatiomResearch Institute, told bizjournals in a telephones interview. "If they had a it would be a short period of The longer that it stretches out the more of a politicalp liabilityit becomes.” Still, it coulds take more than a year beforre G.M.
emerges once more as a publicly traded While most public attention is focusedon GM, the automaker'es many suppliers are certain to be affected Obams administration and GM officials have said they want a much more competitive GM to emerge from the bankruptcy within 60 to 90 GM plans to sell or close such brandzs as Saturn, Saab, Hummer, and and will shed 2,600 dealerships. The company will closre 11 U.S. manufacturing facilities by the endof 2010. Plantzs throughout GM's system will be idlefd as thecompany downsizes. The that GM said will be closedc and their dates includee two assemblyplants - Mich. (October 2009), and Wilmington, Del.
(July three stamping plants — includingb the previously announced closing in June ofGraned Rapids, Mich., Indianapolis, Ind. (Decembefr 2011), and Mansfield, Ohio (June Powertrain facilities in Livonia, Flint and as well as Parma, Ohio, and Va. are also on the closurw list, reports. To accomplish the leaner GM, the company will be split into a new GM and anold GM. The new GM will be ownesd by the U.S.
and Canadian governments, the Union, and curren t bond holders in the