GM to File Bankruptcy at 8AM, Name Interim Chief

Obama plans speech outlining firm's future

(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. More»

After decades of dominance, automaker blamed others for downfall

(NEWSER) - General Motors dominated the auto industry for much of the 20th century, and its downfall took place over decades. Many of the attributes GM once saw as strengths, from its rigid structure to its diverse range of vehicles, became liabilities as Japanese competitors sucked away even its most loyal customers, reports the New York Times. Yet its bankruptcy filing would have been unthinkable even a few years ago, as GM insisted it was too big to fail. More»

(AP) - General Motors says not enough of its bondholders agreed to swap their debt for company stock, meaning the troubled automaker is almost certainly headed for bankruptcy protection. GM has until Monday to finish restructuring or file for bankruptcy. But the company said today that its offer to exchange $27 billion in unsecured debt for 10% of the company's stock had failed. More»

Most complex filing ever will net hundreds of millions in legal fees

(NEWSER) - GM's expected bankruptcy is bad news for thousands of auto workers, dealers and managers—but a bonanza for the lawyers and consultants orchestrating the most complicated Chapter 11 in history. Bankruptcy specialists who are already billing Chrysler, Lehman Brothers and the US government stand to make hundreds of millions of dollars from GM's restructuring, the New York Times reports. One firm representing GM billed Lehman $55 million for three months' work. More»

Obama administration will not rule out Chapter 11 for ailing autos

(NEWSER) - Treasury advisers are working to line up $40 billion in financing for General Motors and Chrysler—5 times the size of any previous bankruptcy loan—just in case the two automakers need it, the Wall Street Journal reports. While efforts continue to restructure the companies by other means, the administration is speaking to as many as 70 lenders—including Citigroup and JPMorgan, themselves recipients of bailout cash—to provide government-backstopped financing for operations during a Chapter 11 restructuring. More»