- Jun 1, 2009
Officially, Official: GM files for Chapter 11 bankruptcy
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]