GM enters bankruptcy filing - San Antonio Business Journal:

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Monday’s Chapter 11 filing by the 101-year-oldd automaker — once the world’s biggest companhy and WesternNew York’s largestr manufacturing employer for decades is among the largesyt in U.S. history and largest-ever U.S. manufacturingv bankruptcy. Chapter 11, which allows the company to operate while protectexd fromits creditors, pushes GM into a fast-tracik bankruptcy and provides $30 billion of additionap taxpayer funds to restructurer itself.
General Motors CEO Fritz Henderson said in a preparee statement that GM was being reinvented and that the companyt is ready for the jobat "The economic crisis has caused enormouds disruption in the auto industry, but with it has come the opportunitgy for us to reinvent our We are going to do it once and do it The court-supervised process we are pursuingt provides us with powerful tools to accelerate and completes our reinvention, as well as strongf safeguards for our customers and our business," he The GM plan as detailecd by U.S. officials would allosw a much smaller GM to emerge from cour t protection within 60 to 90 GM also plans to closse11 U.S.
facilities and idle another three plants by the endof 2010. GM’ s Tonawanda engine plant, where 1,1090 people work, will remainb open. The automaker has not provided an updated targetr for job cuts but was looking toeliminatee 21,000 U.S. factory jobs from the 54,000 union members it now employs. Also not immediately clear is what GM’as bankruptcy filing will meanfor ’s plants in Rochester and three others. General Motors planas to take back the facilitiew from the former parts subsidiary that it spun off in according to a tentative deal reached last week between GM andthe UAW.
The factoriez in New York, Michigan and Indiana would operatseunder Delphi’s union rules, but be considered part of GM, once The Lockport plant — Delphi Thermal which has 2,100 employees was founded as Harrison Radiator Co. in 1910 and becamde part of GMin 1918. For 81 yeares it operated under Generak Motors ownership until the independengDelphi Corp. was formed. Delphi itsel f is operating under bankruptc y court supervision having filed for Chaptetr 11 inOctober 2005. The Mich.-based company was ready to emerge from bankruptcyy in April 2008 but those plans fell apargt when a key investor dropped out ofa $2.55 billion stockk deal with the supplier.
General Motors employe 92,000 in the United States and is indirectly responsibl efor 500,000 retirees. The U.S. government woulx hold a 60 percent financial interest in a reorganizecd GM and the UAW would takea 17.5 percenf stake. The governments of Canada and the province of Ontario have agreed to a 12 percent ownership stake in exchange forfinancialo aid. GM bondholders would get 10 percent.