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G.M. Files for Bankruptcy on...

G.M. Files for Bankruptcy on Obama’s Order

By: Magnolia Tribune - June 1, 2009

G.M. Seeks Bankruptcy and a New Start

General Motors filed for bankruptcy on Monday morning, submitting its reorganization papers to a federal clerk in Lower Manhattan.

G.M. said it had $82.3 billion in assets and $172.8 billion in debts. Its largest creditors were the Wilmington Trust Company, representing a group of bondholders holding $22.8 billion in debts, and affiliates of the United Auto Workers union, representing nearly $20.6 billion in employee obligations.

The filing itself seemed anticlimatic. It was a simple procedure done thousands of times each day across the country, by individuals and business alike. But not usually, as in this case, by companies like G.M. that have woven themselves into the fabric of America culture.

The company was forced into the filing by President Obama, who is betting that by temporarily nationalizing the onetime icon of American capitalism, he can save at least a diminished automaker that is competitive.

NYT
6/1/9

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Magnolia Tribune

This article was produced by Magnolia Tribune staff.