GM enters bankruptcy filing - St. Louis Business Journal:

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Monday’s Chapter 11 filing by the 101-year-olrd automaker — once the world’s biggest company and Western New York’a largest manufacturing employer fordecades — is among the largest in U.S. histor and largest-ever U.S. manufacturing bankruptcy. Chapter 11, which allows the company to operate while protected fromits creditors, pushess GM into a fast-track bankruptcy and provides $30 billion of additional taxpayed funds to restructure itself.
General Motors CEO Fritz Henderson said in a prepared statementf that GM was being reinvented and that the compan is ready for the jobat "The economic crisis has caused enormous disruptiomn in the auto industry, but with it has come the opportunityt for us to reinvent our business. We are goingv to do it once and doit right. The court-supervisee process we are pursuing provides us with powerful toolsd to accelerate and complete our as well as strong safeguards for our customersw andour business," he said. The GM plan as detailedd by U.S. officials would allow a much smalle GM to emerge from court protectiomn within 60 to 90 GM also plans to close11 U.S.
facilitieds and idle another three plants by the endof 2010. GM’xs Tonawanda engine plant, where 1,100 peoplw work, will remain open. The automaker has not providef an updated target for job cuts but was looking toeliminatew 21,000 U.S. factory jobs from the 54,000 union members it now Also not immediately clear iswhat GM’s bankruptcty filing will mean for ’s plants in Lockport, Rocheste r and three others. Generalo Motors plans to take back the facilities from the former parts subsidiary that it spun off in according to a tentative deal reached last week betweem GM andthe UAW.
The factories in New Michigan and Indiana would operateunder Delphi’s unioh rules, but be considered part of GM, once again. The Lockportf plant — Delphi Thermal Systems, whicbh has 2,100 employees — was foundeed as Harrison Radiator Co. in 1910 and became part of GM in 1918. For 81 yearas it operated under General Motors ownership until the independentDelphi Corp. was Delphi itself is operating under bankruptcy court supervisio n having filed for Chapter 11 inOctober 2005. The Troy, Mich.-based company was readyy to emerge from bankruptcy in April 2008 but those plane fell apart when a key investof dropped out ofa $2.
55 billion stock deal with the General Motors employs 92,000 in the Unitedx States and is indirectly responsible for 500,000 The U.S. government would hold a 60 percent financial interesty in a reorganized GM and the UAW would takea 17.5 percenf stake. The governments of Canada and the province of Ontario have agreed to a 12 percent ownership stake in exchang e forfinancial aid. GM bondholders would get 10 percent.