'Good GM' Out Of Bankruptcy In 36 Days
General Motors has emerged from Chapter 11 restructuring bankruptcy in 36 days, beating Chrysler's exit from bankruptcy by six days, thanks to your taxpayer dollars.
Though some futile last-minute appeals remain, GM was essentially cleared to sell its good assets and reorganize into a new company at noon today, when an order expired that put the process on temporary hold. The asset sale will happen tomorrow.
Remember, however, that plenty of rotten GM assets remain in bankruptcy, and probably will for a long time.
The old GM will be renamed Motors Liquidation Co., will appoint its own board of directors (how does that sound for a fun gig?) and will wind down or sell its assets, under the supervision of bankruptcy court.
GM has received some $50.7 billion in government aid and a lot of arm-twisting from Washington. So much so that it emerges from bankruptcy one chief executive lighter, as Rick Wagoner was forced to resign by the White House.
In return for their investment, taxpayers receive the biggest chunk of Government Motors, er, General Motors. Here's how the stock ownership breaks down:
-- Treasury Department: 60.8 percent.
-- UAW Retiree Medical Benefits Trust: 17.5 percent.
-- Canada and Ontario governments: 11.7 percent.
-- The old GM (Motors Liquidation): 10 percent.
GM chief executive Fritz Henderson is announcing a number of executive changes tomorrow. Among them, it is expected that GM legend Bob Lutz, probably the company's best product guy ever, will stay at the company, instead of retiring at the end of the year, as planned.
July 9, 2009; 2:53 PM ET
Categories: The Ticker | Tags: Chrysler, General Motors, Rick Wagoner
Save & Share: Previous: Bush Official: Second Stimulus a Bad Idea
Next: Economy Puts Annual 'Billionaire Summer Camp' In Glum Mood
The comments to this entry are closed.