General Motors officially submitted to the U.S. court to apply for bankruptcy protection
The world's largest car manufacturer General Motors 8:00 today the United States Bankruptcy Code in accordance with Chapter 11 Bankruptcy Court in New York formally submitted to the bankruptcy petition.
Founded in 1908, GM will be in accordance with the United States "Bankruptcy Law" Chapter 11 bankruptcy filing of United States's third-largest enterprise, the largest manufacturing enterprises, but also the number of employees involved in the second bankruptcy of large enterprises. At the same time, this is the automobile industry, following the United States filed for bankruptcy protection after Chrysler, another giant in the global automotive industry bankruptcy. Now, the center of the global auto industry - Detroit - Ford Motor is only one of the remaining seedlings alone.
Prior to the disclosure of the details of the basis, the taxpayer will hold a majority stake in the new company and will reduce its debt of more than 50%.
United States Government will hold 60% of the "new common" shares. Government hopes that through negotiations with trade unions, to reduce employee benefits and reduce the cost of production of General Motors, so that generic competitors can compete with Toyota.
Government of Canada will provide 9.5 billion U.S. dollars to help the new GM bankruptcy protection as soon as possible to remove the hat, the 12% stake.
GM plans to close nine factories and idle another three plants, the reduction is expected to be about 54,000 by the National Association of Automobile Manufacturers of the total number of 21,000 people. GM is currently the total number of 92,000 employees, in addition to the burden he needed 50,000 workers the burden of retirement.
U.S. auto industry trade unions will hold a joint "New Universal" 17.5% of the shares. Bondholders holding the other 10% stake.
"The New York Times" reported that General Motors creditors resolution last Saturday in support of its reorganization plan. These creditors have a 27.2 billion U.S. dollars GM half of the bond debt.
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