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Electronics Production | June 01, 2009

GM filed for pankruptcy protection

Update: The US-American automaker General Motors has filed for bankruptcy protection, stating that it had $172.81 billion in debt and $82.29 billion in assets.

The GM bankruptcy, filed around 8 a.m. EDT in New York, is the culmination of 4 months of confrontation between the government in Washington and the company's Detroit headquarter. It is expected to result in a drastic downsizing of the company. This bankruptcy protection deal will hand over 60% ownership stake to the American taxpayer during the company's restructuring. GM will most likely have to lay off 21,000 union workers and close 12 to 20 factories. 40% of the company’s 6,000 dealerships will close, American media reports. The majority of General Motor's bondholders have already agreed not to challenge the filing in court and to exchange their debt for stock. GM Bankruptcy Court Filings have begun with N.Y. Dealer (Chevrolet-Saturn of Harlem Inc.). It is said that many of the company's affiliates will have to file separate petitions. Image Source: AP
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