WASHINGTON — General Motors, the humbled auto giant that has been part of American life for more than 100 years, will file for bankruptcy protection today in a deal that will give taxpayers a 60 percent ownership stake and expand the government’s reach into big business.
Underscoring the government’s extraordinary role, President Barack Obama planned to announce his support for GM’s restructuring strategy at a midday appearance.
GM president and CEO Fritz Henderson planned to hold a press conference following Obama’s announcement.
Administration officials said late Sunday the federal government would pump $30 billion dollars into GM as it makes its way through bankruptcy court. That’s besides the $20 billion in taxpayers’ money that the Treasury already lent to the automaker.
The money would come from what remains of the $700 billion rescue fund for the financial sector.
The officials said the administration expects the court process to last 60 to 90 days. If successful, GM will emerge as a leaner company with fewer plants and a trimmed dealership force.
On Sunday a group of large, institutional bondholders, representing 54 percent of GM bondholders, agreed to exchange their unsecured bonds for a 10 percent stake in a newly restructured company, plus warrants to purchase a greater share later.
by the associated press
Underscoring the government’s extraordinary role, President Barack Obama planned to announce his support for GM’s restructuring strategy at a midday appearance.
GM president and CEO Fritz Henderson planned to hold a press conference following Obama’s announcement.
Administration officials said late Sunday the federal government would pump $30 billion dollars into GM as it makes its way through bankruptcy court. That’s besides the $20 billion in taxpayers’ money that the Treasury already lent to the automaker.
The money would come from what remains of the $700 billion rescue fund for the financial sector.
The officials said the administration expects the court process to last 60 to 90 days. If successful, GM will emerge as a leaner company with fewer plants and a trimmed dealership force.
On Sunday a group of large, institutional bondholders, representing 54 percent of GM bondholders, agreed to exchange their unsecured bonds for a 10 percent stake in a newly restructured company, plus warrants to purchase a greater share later.
by the associated press
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