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GM files for Chapter 11 bankruptcy

2009-06-01 20:01:29 (GMT) (Caymanmama.com - Automotive Business News)

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San Diego, California (CaymanMama.com) — Failing automaker General Motors has been forced to file for Chapter 11 bankruptcy protection under the Obama administration’s strategy to downsize the company to a sustainable size and hand over a majority of ownership stake to the government.

GM’s bankruptcy filing on Monday marks the fourth-largest bankruptcy filing in American history and the largest for an industrial company. GM said it currently holds $172.81 billion in debt and $82.29 billion in assets.”The General Motors board of directors authorized the filing of a Chapter 11 case with regret that this path proved necessary despite the best efforts of so many,” a GM statement said.

“Today marks a new beginning for General Motors. … The board is confident that this New GM can operate successfully in the intensely competitive U.S. market and around the world.”

As the struggling auto giant works to reorganize, the auto industry will no lean on $30 billion of extra financial assistance from the Treasury Department and $9.5 billion from Canada. That is in addition to nearly $20 billion in taxpayer funds General Motors has gotten in the form of low-interest loans.



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