Main | Friday, May 22, 2009

Bankruptcy For GM

General Motors will get another $30B in bailout loans as it steers the company into bankruptcy next week.
The Obama administration is preparing to send General Motors into bankruptcy as early as the end of next week under a plan that would give the automaker tens of billions of dollars more in public financing as the company seeks to shrink and reemerge as a global competitor, sources familiar with the discussions said. The move comes as the administration prepares to lift the nation's other faltering car company, Chrysler, from bankruptcy protection as soon as next week, industry sources said. The shifts into and out of bankruptcy are landmarks in the Obama administration's attempt to broker a historic restructuring of the American auto industry in the space of months.
The UAW retiree health fund will own 39% of the newly structured company as it forgives $10B that GM owes it.

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