The Hellenic Radio (ERA): News in English, 09-06-01
From: The Hellenic Radio (ERA) <www.ert.gr/>
CONTENTS
[01] General Motors files for Bankruptcy
[01] General Motors files for Bankruptcy
News
General Motors filed for Chapter 11 bankruptcy protection Monday as
part of the Obama administration's plan to shrink the automaker to a
sustainable size and give a majority ownership stake to the federal
government.
GM's bankruptcy filing is the fourth-largest in U.S. history and the
largest for an industrial company. The company said it has $172.81
billion in debt and $82.29 billion in assets.
As it reorganizes, the fallen icon of American industry will rely on
$30 billion of additional financial assistance from the Treasury
Department and $9.5 billion from Canada. That's on top of about $20
billion in taxpayer money GM already has received in the form of
low-interest loans.
The plan is for the federal government to take a 60 percent ownership
stake in the new GM. The Canadian government would take 12.5 percent,
with the United Auto Workers getting a 17.5 percent share and unsecured
bondholders receiving 10 percent. Existing GM shareholders are expected
to be wiped out.
News item: 22996
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