GM Files for Bankruptcy

By Alan Stewart Carl | Related entries in Bailouts, Business, Cars

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All the kings horses and all the bond deals couldn’t keep GM from cracking. As feared, the car giant has filed for bankruptcy. Now what?

The plan is for the federal government to take a 60 percent ownership stake in the new GM. The Canadian government would take a 12.5 percent stake, with the United Auto Workers getting a 17.5 percent stake and unsecured bondholders receiving 10 percent. Existing GM shareholders are expected to be wiped out.

Plus, GM could get an additional $30 billion in federal assistance for its reorganization. That’s on top of the $20 billion the company already received in the form of low-interest loans.

More fallout: the Pontiac, Saturn, Hummer and Saab brands will be terminated or sold. And GM will no longer be listed as part of the Dow Jones industrial average.

Oh, and the majority owner of one of America’s most storied companies will now be the U.S. government – at least for awhile.

Good times. More soon.


This entry was posted on Monday, June 1st, 2009 and is filed under Bailouts, Business, Cars. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “GM Files for Bankruptcy”

  1. marvin Says:

    The current bailout plan the Obama administration has somehow contribute in lessening the effects of economic global crisis to everyone. Maybe in due time, the economy will bounce back to where it should be.

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