General Motors, America’s largest automaker, is now officially bust. Its plan to restructure with the help of the federal government has finally been approved by the court of law. The decision, handed out by Judge Robert Gerber, cited that the bankruptcy “is the only available means to preserve the continuation of GM’s business.”
The bankruptcy plan, filed last June 1, aims to create a new company and free General Motors from expensive contracts and debt. While the government will be playing a huge role in the restructuring, Fritz Henderson will remain as chief executive officer.
“Now it’s our responsibility to fix this business and place the company on a clear path to success without delay,” Henderson said in the statement.
A four-day stay before the closing of the sale is also part of the ruling. This gives objectors (and there are quite a lot) a chance to appeal.
The new GM, jokingly regarded by some as “Government” Motors, will be owned by several stakeholders with US taxpayers owning 60% of the company while the rest is split up among Canadian government stakes, bondholders, and the United Auto Workers union.
Source: CNN
