Friday, Jun. 04, 2010
Bankruptcy Day
June 1, 2009
GM files for bankruptcy one day after President Obama's Auto Task Force fires GM chairman and ceo Richard Waggoner, who had led the company for nine years. The actually bankruptcy filing is preceded by extensive negotiations with the United Auto Workers and bond holders, with both groups agreeing to concessions under pressure from the White House. Task force chairman Steve Rattner later says the Administration believed it had only one chance restructure GM and demanded a reorganization that allowed the company to survive even if new vehicle sales in the U.S. continued at a depressed annual level of just 10 million-units.