Just over a month ago, it was Chrysler filing for Chapter 11 Bankruptcy protection, today General Motors did the same:
General Motors filed for bankruptcy protection this morning, marking the end of financial independence for the 100-year-old industrial leviathan that once conflated its interests with the country’s and — counting jobs at the company and its suppliers — employed well over 1 million people.
In a 24-page filing in the U.S. Bankruptcy Court in the Southern District of New York, the storied automaker listed $82.29 billion in assets and $172.81 billion in debts on a consolidated basis.
GM also announced this morning that it will idle or close 14 U.S. manufacturing plants.
The plan cuts GM’s 47 U.S. facilities down to 33 by 2012.
(…)
Under the proposed restructuring, about 60 percent of the new GM would be owned by the United States, about 12 percent by the governments of Canada and Ontario, 17.5 percent by a union health trust, and 10 percent by the company’s current bondholders.
The United States will invest another $30 billion during and after the GM bankruptcy process, officials said last night, bringing the U.S. commitment to $50 billion.
Following that infusion, “the U.S. Treasury does not believe or anticipate that any additional assistance to GM will be required,” a senior administration official said last night, calling the restructuring a “permanent” solution.
That’s $ 30 billion on top of the money that Bush gave G.M. and Chrylser back in December, and the additional funds that Obama gave them back in March.
And if you’re thinking we’ll ever see that money again, I’ve got a bridge to sell you.
As I noted back in April, this is one you can lay squarely on the shoulders of George W. Bush. He didn’t have to give any money to the auto makers during his last month in office. In fact, Congress had explicitly rejected the idea of doing so. If he’d followed through with their wishes, G.M. and Chrysler would’ve been forced into bankruptcy months ago and we wouldn’t be out tens of billions of dollars.
[...] General Motors follows Chrysler into bankruptcy (Below the Beltway) [...]
An end of an era for sure. Too bad we couldn’t have ended it last September before dumping billions of our dollars into this obvious black hole this was then and now before power-hungry politicians got a hold of this. Too bad taxpayers will now be subsidizing crappy cars produced by our friendly Government Motors for years to come through tax subsidies and GM consumer tax credits. Too bad we the people have allowed our elitist leaders in D.C. to run over us, our liberties, and our freedoms the last several years (Bush) and months (Obama). An end of an era to be sure.
At least liquidation deals abound. Sigh. http://tinyurl.com/nv9oun