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AutoBlog: Officially, Official: GM files for Chapter 11 bankruptcy

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Filed under: Trends, Government/Legal, GM, Earnings/Financials

gm-ren-cen-flags-d-day-580.jpg

The die is cast: General Motors has filed for bankruptcy. As expected, the automotive giant filed for Chapter 11 bankruptcy protection this morning in a New York court, listing $82 billion in assets and $172 billion in debts.

As we told you earlier, the century-old company will gain extensive assistance from the U.S. government, the former chipping in $30 billion in financing (GM has already received over $19 billion), that latter of which is expected to work extensively with the automaker as it goes through bankruptcy proceedings that will see the company's assets split into "Good GM" and "Bad GM," the latter of which will be liquidated.

According to the Detroit Free Press, the Obama administration has said that it will manage its holdings in GM (the government gets a 60% stake) in a "hands-off" non-interference fashion, with no White House employees serving on the board or being employed by the automaker. However, Capitol Hill will get the chance to influence company proceedings, as it will vote on core issues of governance that include "selecting the company's board of directors and major corporate transactions." While that may not equate to day-to-day management decisions, the government will certainly have the ability to influence company plans through appointments and such decision-making processes.

You can read more about the filing and the ramifications at the link below.

[source: Detroit Free Press | Image: Michael Heiman/Getty]

Officially, Official: GM files for Chapter 11 bankruptcy originally appeared on Autoblog on Mon, 01 Jun 2009 09:26:00 EST. Please see our terms for use of feeds.

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Not to kick the company while it is down, but:

"The day that seemed unthinkable as little as 6 months ago has arrived, as GM files for Chapter 11."

is not really accurate. As little as 6 months ago it seemed "unavoidable", not "unthinkable". It has seemed probable for perhaps a year or more.

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Who are you trying to kid? Since you've been here you make it your apparent mission to kick GM any chance you get.

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Anyone have a Emoticon of one person kicking another in the butt? That would be good for us to have here :P

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I think most of us have seen this coming for the past year, at least. When gas prices were skyrocketing last year, and GM had no excellent competition in the small car category, I figured they were more or less toast.

However, the company is going to be back, and in better shape, and that's the key here.

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I think the bankruptcy is mostly prepackaged. It won't be as long and messy as one filed without creditors and union agreement, but it will be painful. GM cannot escape really deep cuts this time.

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Not a big surprise here. Hopefully we see a leaner, meaner GM come out of this inevitability.

The Cut-backs will be big.

Brace yourself, but...

We all need to remember that this is probably the BEST news since, well... their last profit.

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So NOW Americans will work for Japanese slave wages, small independent auto supported companies will go under, more people will suddenly be homeless, jobless, & have no opportunity in Detroit, & the USA Government will HAVE to step up & support the Hundred of Thousands of Auto Workers who will now be "kicked to the curb" for "trusting" our Country to Honor the Hard Work they put in for decades,....to "Protect" their livelihood !!

WAY TO GO USA !!!....You SUCK.

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I think the bankruptcy is mostly prepackaged. It won't be as long and messy as one filed without creditors and union agreement, but it will be painful. GM cannot escape really deep cuts this time.

I would rather have GM do that than die completely because its own weight.

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Anyone notice the flags are all backwards in that pic in the first post? Something symbolic going on there w/ the photo?

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Anyone notice the flags are all backwards in that pic in the first post? Something symbolic going on there w/ the photo?

Mmmm they aren't backwards. In fact that is how the US flag appears on Army uniforms.

Only if the US flag is upside down is there something wrong. or i guess if you punched holes and flew it with the stripes attached to the pole...

Edited by Teh Ricer Civic!
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Mmmm they aren't backwards. In fact that is how the US flag appears on Army uniforms.

Only if the US flag is upside down is there something wrong. or i guess if you punched holes and flew it with the stripes attached to the pole...

They certainly look backwards to me..the star field is supposed to be on the left. The pic was photographed from behind them, of course, to get that appearance.

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So NOW Americans will work for Japanese slave wages, small independent auto supported companies will go under, more people will suddenly be homeless, jobless, & have no opportunity in Detroit, & the USA Government will HAVE to step up & support the Hundred of Thousands of Auto Workers who will now be "kicked to the curb" for "trusting" our Country to Honor the Hard Work they put in for decades,....to "Protect" their livelihood !!

WAY TO GO USA !!!....You SUCK.

You can say what ever you want, but the Mgmt and especially the Greedy UAW are to blame for the mess of the US Auto Industry. There is no way to justify a person working on the assembly line to make 100K a year when an engineer who uses their brain makes 2/3rds of that. Most of America has to pay a portion of their benefits and retirement. The days of old Unions controlling everything is over. The Global Economy makes everyone accountable for their own long term future rather than just have to rely on a union, in this case some what corrupt union to get things done for them.

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They certainly look backwards to me..the star field is supposed to be on the left. The pic was photographed from behind them, of course, to get that appearance.

Yeah but they still are not backwards.

UNM_Flag_0152w.jpg

See, their flags are facing the same way.

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I would rather have GM do that than die completely because its own weight.

I agree. I just hope GM's second chance is well managed.

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Personally, I don't think GM is going to emerge out of this, but then again, I couldn't care less. I just feel bad for the workers because chances are, they won't have a qualified skillset to do anything else in life.

I still don't think it's justified for a line worker to make the wages they do, because it's ridiculous, but that's my humble opinion. In the U.S. a line worker's wages with benefits accumulates to more than a nurse's wage with benefits here in Canada (dollar converted accordingly).

Stupid. Personally, a nurse is alot more valuable than a line worker installing a dash or some other component in a car.

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