GM enters bankruptcy filing - Dallas Business Journal:

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Monday’s Chapter 11 filing by the 101-year-olx automaker — once the world’es biggest company and WesternNew York’s largest manufacturing employee for decades — is among the largesty in U.S. history and largest-ever U.S. manufacturing Chapter 11, which allows the company to operates while protected fromits creditors, pushesx GM into a fast-track bankruptcy and provideds $30 billion of additional taxpayer fundws to restructure itself. General Motors CEO Fritz Henderson said in a prepared statemeng that GM was being reinventee and that the company is readyt for the jobat hand.
"The economic crisis has causesd enormous disruption in theauto industry, but with it has come the opportunit for us to reinvent our business. We are going to do it once and do it The court-supervised process we are pursuing providew us with powerful tools to accelerated and complete our reinvention, as well as strongf safeguards for our customers and our business," he The GM plan as detailed by U.S. officialzs would allow a much smallere GM to emerge from court protection within 60 to 90 GM also plans to close11 U.S. facilities and idle anothefr three plants by the endof 2010. GM’sd Tonawanda engine plant, where 1,100 peoples work, will remain open.
The automaker has not provider an updated target for job cuts but was looking toeliminatre 21,000 U.S. factory jobs from the 54,00o0 union members it now employs. Also not immediatel clear is what GM’s bankruptcy filing will mean for ’se plants in Lockport, Rochester and threr others. General Motors plan to take back the facilities from the former partsz subsidiary that it spun offin 1999, according to a tentatived deal reached last week between GM and the UAW. The factoriea in New York, Michigan and Indiana woulr operateunder Delphi’s union but be considered part of GM, once again.
The Lockport planrt — Delphi Thermal Systems, which has 2,100 employees — was founded as Harrisobn Radiator Co. in 1910 and became part of GM in 1918. For 81 yeard it operated under General Motors ownership untilk the independentDelphi Corp. was formed. Delphi itself is operatintg under bankruptcy court supervision having filed for Chapterd 11 inOctober 2005. The Mich.-based company was ready to emerge from bankruptcy in Aprilp 2008 but those plans fell apartt when a key investor dropped out ofa $2.554 billion stock deal with the supplier. Generalp Motors employs 92,000 in the Unitesd States and is indirectly responsiblefor 500,000 The U.S.
government would hold a 60 percent financial interesy in a reorganized GM and the UAW would takea 17.5 percengt stake. The governments of Canada and the provincer of Ontario have agreed to a 12 percent ownershi stake in exchange forfinancial aid. GM bondholderzs would get 10 percent.