Officially, Official: GM files for Chapter 11 bankruptcy
by Chris Paukert on Jun 1st 2009 at 9:26AM 
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]
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Reader Comments (Page 1 of 3)
i_bet 9:36AM (6/01/2009)
?
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andy 9:35AM (6/01/2009)
Sucks. Has to happen but it doesn't make it any easier. Lots of people are going to be hurt by this. I hope they can bounce back and come back right. They have made some bad decisions over the years, but now they have a chance to right the ship.
I support you GM.
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andy 10:41AM (6/01/2009)
yeah but this should have been done months ago, they decided to burn through all our money then declare bankruptcy.
Therefore i don't support you GM
TyWright 11:26AM (6/01/2009)
Ya I can't support a Government/Union owned company, which rips the entrepreneurial spirit out of this brand. So sad.
Detroit RIP.
Tool 12:05PM (6/01/2009)
To all the Chicken Little "Sky is Falling" People.
It was a lot easier that everyone thought. Obama and his task force handle this masterfully. Henderson and his new management team seem competent. A New GM will emerge.
Hope GM can turn it around. GM produced 450 million vehicles over the past 101 years--most people have a story to tell growing up in and then driving their vehicles. Let's hope those stories moving forward are positive ones, instead of the horror stories or poor quality, crappy service, etc.
British_Rover 12:25PM (6/01/2009)
@ TyWright
Cause yeah GM has had lots of entrepreneurial spirit over the past couple of decades. Maybe they can finally strip some of the fat off and be a bit more nimble in the marketplace after this Bankruptcy.
GOT 4:59AM (6/02/2009)
Hope GM will begin anew building cars to be desired (like they in the years leading up to 1972).
Sea Urchin 9:38AM (6/01/2009)
Boy, you guys are really late, i knew about this since about 2000's, when Wagoner took over.
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BigWill 9:43AM (6/01/2009)
Hey Urch, do you think you'll ever get over your obsession with Rick Wagoner?
Sea Urchin 9:54AM (6/01/2009)
Seeing as he ruined GM all the while having the utmost support of the board of bystanders and the fanboys in here, and getting $20 Mil Golden parachute on top of making $17+ million dollars a year while flying a corporate jet ……………………………..Probably not.
jpm100 10:14AM (6/01/2009)
The problems GM faces took several decades to create. Not acknowledging that prettymuch speaks for itself.
Yaroukh 11:19AM (6/01/2009)
you must be really wealthy guy due the shorting on GM :)
bubenator 9:44AM (6/01/2009)
"...However, Capitol Hill will get the chance to influence company proceedings..."
I guess that means the 2012 Pelosi GTxi SS/RT Sport Edition will actually get a shot at production, probably in Flint.
Oh joy!
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KIB2 9:44AM (6/01/2009)
Most fans seen it coming a long time ago. As much money as they pumped into Pontiac and Buick, it's ashame to see Pontiac go. I'm going to miss The Pontiac Game Changing Perfomance in College Football.
http://www.youtube.com/watch?v=vEY5wycJtIE
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ack154 9:55AM (6/01/2009)
Um, I'm pretty sure the Game Changing Performance will still exist... and some other company will throw their money around to whore their name all over it.
KIB2 10:00AM (6/01/2009)
Yeah I just want Pontiac back, maybe Magna will pick them up.
Brandon 10:47AM (6/01/2009)
Yeah I really hope Pontiac comes back to resurrect classics like the G3, G5, G6, Grand Am, Montana, Aztec, Sunbird, Sunfire, 6000, front drive Bonneville, front drive Grand Prix, and Lemans (Daewoo). Wow those were some high performance beasts:)
KIB2 11:04AM (6/01/2009)
My new line up for Pontiac would be:
Fiero to replace the G3 with a focus on low-e maybe the first all electric in its class,
keep the G6 great car,
rename the G8 the Grand Prix,
keep the Soltice,
bring back the Firebird,
Keep the Torrent but make it a small truck like the Canyon or Colorado with more utility and sport options.
By the way the Aztek was a great car, maybe before it's time.
Dave in MI 9:45AM (6/01/2009)
Did they announce which plants are closing?
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jamie 11:32AM (6/01/2009)
Assembly plants scheduled to close:
-- Wilmington, Del. Scheduled to close in July. Cars produced at the plant include the Pontiac Solstice, the Pontiac Solstice Coupe, the Saturn Sky and the Opel GT.
-- Pontiac, Mich. Set to shut its doors in October. Produces the GMC Sierra, a sports utility vehicle, and the Chevrolet Silverado.
Assembly plants expected to be idled:
-- Orion, Mich. Assembles Chevrolet Malibu and the Pontiac G6. Will halt production in September.
-- Spring Hill, Tenn. Assembles Chevrolet Traverse. Will halt production in November.
Two new stamping plants, which mold sheets of steel into different auto parts, are set to close permanently:
-- Mansfield, Ohio. Will close in June 2010.
-- Indianapolis. Will close in December of 2011.
One stamping plant will be idled:
-- Pontiac Metal in Pontiac, Mich. Expected to shut down at least temporarily in December of 2010.
Five plants where powertrain systems are produced are scheduled to close:
-- Livonia Engine in Livonia, Mich. Will close in June 2010.
-- Four other powertrain plants will close in December 2010: Flint North Components in Flint, Mich.; GM's Willow Run Site between Ypsilanti and Belleville, Mich.; Parma Components in Parma, Ohio (near Cleveland) and Fredericksburg (Va.) Components.
Three service and parts warehouses and parts distribution centers are also on the closure list:
-- Warehouses in Boston, Jacksonville, Fla. and Columbus, Ohio. Set to close on the last day of this year.
Source: GM.