GM Bankrutpcy
Founded in 1908, General Motors, for many years the largest automotive manufacture in the world, filled for bankruptcy in June 2009.
After losing hoards of money and burning its remaining cash, General Motors was forced to run to the U.S. government to keep it self afloat by winter 2008. GM was challenged by the government to come up with a viable plan to avoid bankruptcy, but as sales continued to plummet in early 2009 the U.S. government was forced to step-in. A normal bankruptcy liquidation of GM was considered to be too detrimental to the fragile economy, which was already in a very weak state due to the credit crisis. To avoid a GM bankruptcy liquidation and hurting the economy further, in April 2009 the U.S. Treasury provided billions more in backing to the hobbled company and started working on renegotiating the company's massive debt load with VEBA, GM's healthcare trust, and bond holders. After looking over the company and working with debt holders, an "orderly bankruptcy" was thought to be the best option to restructure GM. On June 1st, General Motors filed for bankruptcy.
GM used Section 363 of the bankruptcy code which resulted in the creation of a 'New GM' with a healthy balance sheet, putting the new company on a clear path toward long-term viability and success.
On July 10th, just 40 days after entering bankruptcy court, the new GM was allowed to emerge from bankruptcy. The new GM will go with just four brands (Chevrolet, Cadillac, Buick and GMC), have significantly less debt, and a smaller workforce. At the onset, the new GM, General Motors Company will be owned by:
U.S. Department of the Treasury: 60.8 percent
UAW Retiree Medical Benefits Trust: 17.5 percent
Canada and Ontario governments: 11.7 percent
The old GM: 10 percent
There is currently no publicly traded security for the new GM. An IPO has been talked about for the 2nd half of 2010.
WILMINGTON, Del.--(BUSINESS WIRE)-- Wilmington Trust Corporation (NYSE: WL) reported a loss of $5.9 million, or $0.15 per diluted common share, for the third quarter of 2009. Earnings for the quarter were offset by $38.1 million of losses on securities in the company's investment portfolio. On an after-tax basis, these securities losses reduced net income by approximately $23.6 million and earnings by approximately $0.34 per diluted common share. "The Corporate Client Services business recorded impressive revenue growth, the provision for loan losses declined, the net interest margin improved, and there were numerous other positive ...
General Motors (NYSE: GM) (OTC: GMGMQ) emerged from bankruptcy at 6:30AM this morning, according to published reports, after just 40 days in bankruptcy court. The speed of the GM's emergence from bankruptcy is being ...
General Motors (OTC: GMGMQ) (NYSE: GM) the U.S. Bankruptcy Court for the Southern District of New York approved the sale of substantially all of General Motors Corporation's assets to NGMCO, Inc., an entity funded by the U.S. Department of the Treasury. In connection with the closing of the sale transaction, NGMCO, Inc. will change its name to General Motors Company and continue to operate under ...
UPDATE: The long-awaited bankruptcy of General Motors' (NYSE: GM) is finally upon us and the U.S. government will pitch in another $30 billion of taxpayer money to assist in supporting the 'New GM', or what some have referred to as 'Government Motors'. GM will use Section 363 of the bankruptcy code which will result in the creation of a 'New GM' with a healthy balance sheet, putting the new company on a clear path toward long-term viability and success. The support of more than 54% of the bondholders cleared the way for the 363 sale.
The news marks the end of a century-long era, with GM being founded in 1908 and until recently dominating the auto ...
