After Chrysler filed for bankruptcy one month ago, it was the turn of General Motors to file for bankruptcy under Chapter 11 protection. Today at 8 A.M. local time, General Motors declared bankruptcy at the federal court in Manhattan after they reported $81 billion losses in the last four years. GM is the biggest car manufacturer in the US, and the future of the 235,000 employees worldwide now lies in the hands of Judge Robert Gerber.
The GM bankruptcy is the largest industrial insolvency in the history of the USA, and now the 101-year-old carmaker is under court protection. Now there are two from the top three US carmakers under Chapter 11 protection, and President Barack Obama is expected to hold a press conference today to speak of the matter.
General Motors manufactures brands like Cadillac, Chevrolet, Opel, Hummer, and Vauxhall, and although they’ve gone bankrupt, the company will keep on producing cars. GM officials hope that the US Government will give them another hand, and the company will be back, but in a smaller “shape” in the next 60 to 90 days.
Although it’s the largest industrial company to file for bankruptcy, GM is the third largest company to go bankrupt. Lehman Brothers, and WorldCom are the first and second. The former is an investment bank, while the latter is a telecommunications company.
Those familiar with the matter expected General Motors to go bankrupt sooner or latter, but some believed that the carmaker will recover thanks to the $19 billion aid from the Treasury, and $30 billion from the US government.
GM put heir hopes into Judge Robert Gerber’s hands who took care of bankruptcies for companies like Adelphia, and Global Crossing.
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