GM to Exit Bankruptcy Today
"The new company can only be good. I'm very much looking forward to the point where we're operating in the clean air and the name of the company not being associated with bankruptcy," GM's sales chief, Mark LaNeve was quoted as saying by Reuters.
After the exit from bankruptcy and under the terms of the deal struck with the US government and its lenders, the US Treasury will give the automaker $60 billion in financing, receiving in return a 60 percent stake in the new GM. The UAW will receive a 17.5 percent stake on account of GM's debts, while the Canadian government will take around 12 percent of the company's shares. GM's bondholders are poised to receive 10 percent of the company.
The announcement will be made probably today, during a press conference held by GM CEO Fritz Henderson in the Renaissance Conference Center. According to GM, the CEO will "host a press conference on Friday, July 10, to update the media on GM business activities. This will be followed later in the day by web and Twitter chats."
Initially, the announcement was supposed to be made yesterday, as reports claimed. Matthew Schwartz, an assistant US attorney, said yesterday the "parties are prepared to close immediately upon the expiration of the stay on Thursday afternoon."