GM enters bankruptcy filing - Puget Sound Business Journal (Seattle):

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Monday’s Chapter 11 filing by the 101-year-old automake r — once the world’s biggest compan and Western New York’s largest manufacturing employer fordecades — is amon the largest in U.S. history and largest-ever U.S. manufacturing bankruptcy. Chapter 11, which allows the company to operate whiled protected fromits creditors, pushes GM into a fast-traci bankruptcy and provides $30 billion of additional taxpayer funds to restructure itself.
General Motors CEO Fritx Henderson said in a prepared statement that GM was being reinvented and that the companty is ready for the jobat "The economic crisis has causex enormous disruption in the auto industry, but with it has come the opportunituy for us to reinvent our business. We are going to do it once and do it The court-supervised process we are pursuin g provides us with powerful tools to acceleratw and complete our reinvention, as well as strong safeguardsx for our customers and our he said. The GM plan as detailed by U.S. officialxs would allow a much smaller GM to emerge from courf protection within 60 to90 days. GM also planw to close 11 U.S.
facilities and idle anotheer three plants by the endof 2010. GM’s Tonawandz engine plant, where 1,100 people work, will remain open. The automaker has not provided an updated target for job cuts but was lookinb toeliminate 21,000 U.S. factory jobs from the 54,00 union members it now employs. Also not immediately clear is what GM’sa bankruptcy filing will meanfor ’s plantx in Lockport, Rochester and three General Motors plans to take back the facilities from the formeer parts subsidiary that it spun off in according to a tentative deal reached last week between GM and the UAW.
The factoriees in New York, Michigan and Indianw would operateunder Delphi’s union but be considered part of GM, once again. The Lockport plant — Delphi Thermal which has 2,100 employeesd — was founded as Harrison Radiator Co. in 1910 and becamd part of GM in 1918. For 81 years it operatesd under General Motors ownership untip the independentDelphi Corp. was formed. Delphi itself is operatin under bankruptcy court supervision havingv filed for Chapter 11 inOctober 2005. The Mich.-based company was ready to emerge from bankruptcy in April 2008 but those plans fell apart when a key investort dropped out ofa $2.
554 billion stock deal with the General Motors employs 92,000 in the United Statews and is indirectly responsiblre for 500,000 retirees. The U.S. government would hold a 60 percent financial interesr in a reorganized GM and the UAW woul d takea 17.5 percent stake. The governmentsd of Canada and the province of Ontarii have agreed to a 12 percent ownershi stake in exchange forfinancial aid. GM bondholders wouled get 10 percent.