07 July 2009 04:33 [Source: ICIS news]
SINGAPORE (ICIS news)--The US government will own 60.8% of embattled carmaker General Motors (GM) after the Bankruptcy Court for the Southern District of New York approved late on Monday the company’s restructuring plan.
The remaining stake in the company would be split between the United Auto Workers (UAW) Retiree Medical Benefits Trust (17.5%), the Canadian and ?xml:namespace>
Under the approved restructuring plan, GM would sell a substantial amount of its assets together with the company’s “strongest operations” to NGMCO, Inc, an entity funded by the US Treasury.
Upon the completion of the sale, NGMCO would then change its name to General Motors Company while the current General Motors Corporation will change its name to Motors Liquidation Company.
“The new GM will have lower leverage and a stronger balance sheet, which when combined with a lower break-even point, will allow it to reduce its risk, operate profitably at much lower volume levels,” the automotive giant said.
GM filed for Chapter 11 bankruptcy protection on 1 June as part of a government-led plan to restructure the 100 year-old company.
The move represented the third largest corporate bankruptcy in
To discuss issues facing the chemical industry go to ICIS connect
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections