Auto manufacturer General Motors has filed for Chapter 11 bankruptcy protection in New York this morning. It is expected the U.S. government will take 60% ownership and the Canadian government will take 12.5%. 17.5% will be owned by the UAW and bond holders will hold 10%.
By filing for bankruptcy protection, GM automatically loses its spot on the Dow Jones Industrial Average stock index. It is unclear yet whether Canadian plants will be closed.
According to Kent Kresa, GM Chairman:
Today marks a new beginning for General Motors. A court-supervised process and transfer of assets will enable a New GM to emerge as a stronger, healthier, more focused and nimbler company with a determination not to just survive but to excel.
Related news reports:
GM files for bankruptcy protection – CBC News (June 1, 2009)
GM Files Bankruptcy to Spin Off More Competitive Firm – Bloomberg (June 1, 2009)
Related legal documents and filings are available from the General Motors Corporation Court Documents and Claims Register (hat tip R. Richards)