Tuesday, June 2, 2009

GM Bankrupt

General Motors, the humbled auto giant finally filed for bankruptcy protection Monday in a deal that will give taxpayers a 60% ownership stake and expand the government's reach into big business.

The GM filed under section 363 of the U.S. bankruptcy code. The 363 filing allows GM to spin a new debt-free company quickly out of bankruptcy. It's basically the "Chrysler Plan."

General Motors bankruptcy is the third largest bankruptcy ever happen in US history and largest ever in manufacturing sector.

General Motors alone employ 92,000 in the United States and is indirectly responsible for 500,000 retirees.

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