In the News: GM Files For Bankruptcy Protection
It’s no longer a threat, a fear or a consequence – it’s now official, GM has filed for Chapter 11 Bankruptcy Protection. As part of the process, the government has started that they will provide GM with an additional $30.1 billion to usher the company through bankruptcy, and, in exchange, will initially receive a 60% ownership ake in the new company. Another 12.5% will be owned by the Canadian government in exchange for a $9.5 billion infusion. Bondholders and the UAW healthcare fund will be allocated the remaining ownership stakes and more as the process comes to fruition – current shareholders, as mentioned before, will get nothing.
There will be, of course, a bit of argument, finger-pointing, and angered negotiation exchanged, especially on the part of the shareholders, out of work dealers and smaller parts makers who are all being stiffed and shafted by the foreseen outcome. Maybe they can squeeze a few more nickels (or in the shareholders’ case a few nickels period) out of the bankrupt firm – we’ll see. On the bright side, the new Camaro is out – any thoughts?
