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MONDAY, NOVEMBER 23, 2009
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GM Declares Bankruptcy

Obama plans speech outlining firm's future

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(Newser) – Once king of the auto industry, General Motors filed for bankruptcy this morning, the Wall Street Journal reports. The firm must cut some 21,000 workers and close 12 to 20 factories and 40% of dealerships, adds the New York Times. GM says it owes $172.8 billion and has assets of $82.3; for the US government, which will own 60% of the firm, some $30 billion hangs on GM’s return to profitability.

Canada will own 12% of the company. Meanwhile, the workers’ union will have to pay for half its health care fund with shaky stock in the new GM; bondholders are settling for 10 cents of stock for every lent dollar; and the company is dumping Pontiac, Saturn, Saab, and Hummer. Overseeing the process is likely to be Alix Partners, which guided Enron and Kmart through bankruptcies.

The front of a Chevy Malibu is seen in the parking lot of the St. Anne Catholic Community Church in Warren, Mich., Sunday, May 31, 2009.
The front of a Chevy Malibu is seen in the parking lot of the St. Anne Catholic Community Church in Warren, Mich., Sunday, May 31, 2009.   (AP Photo/Mark Carlson)
An American flag flies on a GMC vehicle at a GM dealership in Sunnyvale, Calif., Friday, May 29, 2009.
An American flag flies on a GMC vehicle at a GM dealership in Sunnyvale, Calif., Friday, May 29, 2009.   (AP Photo/Paul Sakuma)
The General Motors headquarters is seen with the moon in the background in Detroit, Sunday, May 31, 2009. GM, the humbled auto giant that has been part of American life for more than 100 years, filed for bankruptcy protection on Monday morning.
The General Motors headquarters is seen with the moon in the background in Detroit, Sunday, May 31, 2009. GM, the humbled auto giant that has been part of American life for more than 100 years, filed...   (AP Photo/Carlos Osorio)
GM headquarters in Detroit, Sunday, May 31, 2009. GM, the humbled auto giant that has been part of American life for more than 100 years, filed for bankruptcy protection this morning.
GM headquarters in Detroit, Sunday, May 31, 2009. GM, the humbled auto giant that has been part of American life for more than 100 years, filed for bankruptcy protection this morning.   (AP Photo/Carlos Osorio)
In this April 27, 2009 file photo General Motors President and CEO Fritz Henderson addresses the company's viability plan in Detroit.
In this April 27, 2009 file photo General Motors President and CEO Fritz Henderson addresses the company's viability plan in Detroit.   (AP Photo/Paul Sancya, File)
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3 comments
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MrSoul
Jun 1, 09 7:55 AM CDT
the rich keep getting richer, the poor keep getting poorer. http://www.documentary24.com/the-obama-deception--329/ red or blue, there's no difference. Reply
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+1
Timinator2K
Jun 1, 09 8:12 AM CDT
Decades of selling the company's soul to the UAW in order to keep production up has the devil here this AM to collect...with no bankruptcy protection from him. Reply
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+3
Chudluv
Jun 1, 09 3:09 PM CDT
You can't lay all the blame on UAW for GM's Bankruptcy. You would have thought those in power learned their lesson back in the late 70's when the oil crush happen then. With Gas guzzling cars, and trucks who's appearance (short order) suck. Toyota, Honda, and other "Foreign" car company's have not forgotten and see where this has landed them. So, if blame is to be place, first Customers, GM, Oil (not really but it does sound good and makes you feel better of one self) and then everyone... Blaming Obama, UAW, or anyone else has their blinders on. Reply
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