$89 billion in pre-filing assets
By declaring bankruptcy on June 1, General Motors become the second of the Big Three automakers to file for Chapter 11 protection joining Chrysler, which filed in April. With some $89 billion in assets, the GM bankruptcy is nearly double the size of Chrysler's; the company's restructuring will mark a seismic shift for GM. CEO Fritz Henderson warned that the filing may even sacrilege! push the automaker out of Detroit; if so, it would be another hard blow for an already struggling city.
The announcement came after the Obama Administration set a June 1 deadline for the beleaguered carmaker to make changes or file for bankruptcy as part of the terms of a nearly $19 billion government loan. GM cleared the last obstacle to bankruptcy on Saturday, May 30, when bondholders voted to exchange their debt for an ownership stake in a postbankruptcy GM. Obama Administration officials said the goal is to have the restructured company emerge from Chapter 11 protection in 60 to 90 days.
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