Page last updated at 11:57 GMT, Friday, 10 July 2009 12:57 UK

GM ready to exit from bankruptcy

GM production line
GM's emergence from bankruptcy may be unusually quick

General Motors (GM) is expected to announce a speedy exit from bankruptcy protection later.

The announcement is anticipated after a bankruptcy court order allowing it to sell its most profitable assets to a "new GM" took effect.

GM has scheduled a news conference in Detroit later on Friday.

The new, streamlined GM, will own the company's core assets such as Cadillac and Buick, and will be 61% owned by the US government.

GM is in the processing of selling off its other brands such as Hummer, Saab and its GM Europe arm.

NEW GM'S BRANDS
Chevrolet
GMC
Cadillac
Buick

A US judge rejected a last-minute request to delay the sale of the profitable parts of the company.

Judge Lewis Kaplan rejected a request for a delay from a group who are pursuing a product liability claim relating to the Chevy Malibu on the grounds that delaying the sale would probably lead to the liquidation of GM.

Help from Chrysler

The emergence from bankruptcy would be unusually quick for a company the size of GM.

GM BRANDS TO GO
Pontiac*
Saturn#
Saab#
Hummer#
Opel#
Vauxhall#
*= to be discontinued/# = to be sold

It has been helped by the legal precedents set in cases relating to Chrysler's bankruptcy protection, when opponents of the deal tried and failed to block it.

GM filed for bankruptcy protection on 1 June, saying it would be forced to liquidate if the plan was not approved.

In effect, a new, smaller GM is being created with a reduced workforce, smaller dealer network and less debt.

It will operate the best parts of the old company, with only its Chevrolet, Cadillac, Buick and GMC brands remaining. Its European operation, Opel, is being sold off.

The firm is getting $60bn (£37.3bn) in financing from the US Treasury, which gives the US government a 61% share in the "new" GM, while the United Auto Workers union will have 17.5%.

Canada's government will have a 12% share and GM bondholders will own about 10% in the new company.



Print Sponsor


RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites



FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC iD

Sign in

BBC navigation

Copyright © 2020 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific