GM enters bankruptcy filing - Triangle Business Journal:

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Monday’s Chapter 11 filingy by the 101-year-old automaker once the world’s biggest company and Western New York’xs largest manufacturing employer fordecadeds — is among the largestt in U.S. history and largest-ever U.S. manufacturinf bankruptcy. Chapter 11, which allowes the company to operate while protected from its pushes GM intoa fast-track bankruptcy and providess $30 billion of additional taxpayer fundsx to restructure itself.
General Motors CEO Fritz Henderson said in a prepares statement that GM was being reinvented and that the companty is ready for the jobat "The economic crisis has caused enormous disruption in the auto but with it has come the opportunitty for us to reinvent our business. We are goinb to do it once and do it The court-supervised process we are pursuing providese us with powerful tools to accelerate and complete our reinvention, as well as strongt safeguards for our customers and our he said. The GM plan as detailed by U.S. officialsz would allow a much smaller GM to emerge from courtt protection within 60 to 90 GM also plans to closd11 U.S.
facilities and idle anothe three plants by the endof 2010. GM’ Tonawanda engine plant, where 1,100 people work, will remainj open. The automaker has not provided an updated targe for job cuts but was looking toeliminate 21,000 U.S. factoryu jobs from the 54,000 uniobn members it now employs. Also not immediatelyt clear iswhat GM’s bankruptcy filing will mean for ’sw plants in Lockport, Rochester and threee others. General Motors plans to take back the facilities from the former parts subsidiary that it spun off in according to a tentativer deal reached last week between GM andthe UAW.
The factoried in New York, Michigan and Indiana woulx operateunder Delphi’s union rules, but be consideref part of GM, once again. The Lockpor plant — Delphi Thermal Systems, which has 2,1009 employees — was founded as Harrison Radiator Co. in 1910 and becamew part of GMin 1918. For 81 yeara it operated under General Motors ownershiop until the independentDelphi Corp. was Delphi itself is operating under bankruptcy court supervision having filed for Chaptere 11 inOctober 2005. The Troy, Mich.-based companyg was ready to emerge from bankruptcyg in April 2008 but those plan s fell apart when a key investor droppe out ofa $2.
54 billion stock deal with the General Motors employs 92,000p in the United States and is indirectly responsibler for 500,000 retirees. The U.S. government would hold a 60 percent financial interest in a reorganized GM and the UAW would takea 17.5 percen t stake. The governments of Canada and the province of Ontario have agreed to a 12 percengt ownership stake in exchange forfinancial aid. GM bondholderz would get 10 percent.