Thursday, July 9, 2009

BREAKING : 'New GM' finishes bankruptcy filing, and sells assets to U.S Department of the Treasury

Eariler this week, General Motors announced that if their new assests weren't approved by the U.S Government, they would have to liquidate. Luckly though, it was announced by a New York judge, that the U.S Government Court approved the sale of most of General Motors Corporation's assets to NGMCO, Inc., an entity funded by the U.S. Department of the Treasury.

So, GM plans on exiting bankruptcy sometime tomorrow, and announcing the new company name with the new 'good GM' assests. Of couse, the new company will be officially called 'New GM', which will be known as General Motors Company. New GM will be supported by a $50 billion in U.S. government loans.

GM CEO, Fritz Henderson, said today "We expect the sale to close immediately after the appeal process is exhausted later this week, and for the new GM to be operational and fully competitive, with an exciting line of new products, a smaller and more focused brand portfolio, and a clear mission to put the customer first in everything we do,"

All we have to say; Good luck New GM!

Source : [Detroit News]

Refresher: GM filed for Chapter 11 bankruptcy protection last June. The CH11 bankruptcy forced GM to cut costs, and close plants. Under the bankruptcy plan, the new company is called 'New GM'. New GM stock will be owned by:
· U.S. Department of the Treasury: 60.8 %
· UAW Retiree Medical Benefits Trust: 17.5 %
· Canada and Ontario governments: 11.7 %
· GM Bondholders: 10 %

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