GM files for bankruptcy - Dayton Business Journal:

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The filing, made in U.S. Bankruptcy Court in marks the fourth-largest bankruptcy filing in U.S. and the largest ever filiny of its kind fora U.S. manufacturer. It followsa months of speculation thatthe 101-year-old company would have to restructurr through the courts, despite desperate attempts by management to avoid the As it turned out, though, the bankruptcy filinh was the only way GM could get its hands on the governmenf money it needs to survive. In its filing, GM listexd $82.3 billion in assets and $172.8 billion in The New York Timese reports thatthe company's largest creditorse were , representing bondholders holding $22.
8 billiobn in debts, and UAW affiliates representinfg $20.6 billion in employee obligations. The U.S. governmentr has already injected $20 billion into GM, and will providw another $30 billion to keep the companyt going as it worksthrougj bankruptcy. The investment will buy the governmentta 72.5 percent stake. That will give governmentf officials more power to name members of theGM board. Officialxs have said they don’t want to get involved in the daily operations ofthe company. But that may provde to be quite a challenge with as much government moneyt asis involved.
"It's not forever," Brucew Belzowski, associate director of the Automotivew Analysis Division at the University of Michigan TransportationmResearch Institute, told bizjournals in a telephon e interview. "If they had a it would be a short periodof time. The longerf that it stretches out the more of a politicalp liabilityit becomes.” While most public attention is focused on GM, the automaker's many suppliers are certain to be affected as In the Albany, N.Y., at least 50 of the 92 dealerships that belong to Easternj New York Coalition of Automotive Retailers Inc.
, a trade group that represents upstate car dealers, sell Generalp Motors’ Chevrolet, GMC, Cadillac, Buick, Hummer, Oldsmobile and Pontiac brands. At least four locakl dealerships havesaid they've been notified by GM that they will be closinbg effective Oct. 2010. Some of the dealers say they plan to fighgthe closings. Those dealerships are: Salisbury Chevrolet in Rosetti Chevrolet in Patrie Chevrolet Buick in Hoosick and Rose Buick Pontiac GMCin Gloversville.
Obamz administration and GM officials have said they want amuch smaller, more competitivre GM to emerge from the bankruptcy within 60 to 90 GM plans to sell or close such brandss as Saturn, Saab, Hummer, and Pontiac, and will shed 2,6090 dealerships. The company will close 11 U.S. manufacturing facilitiee by the endof 2010. To accomplish the leanerf GM, the company will be spli into a new GM and anold GM. The new GM will be ownexd by the U.S. and Canadian the , and current bond holders in the company. To read the bankruptcy filing, click .