GM to Exit Bankruptcy on Thursday

Much faster than initially predicted, American manufacturer GM, or General Motors Company, as it will be called from now on, is getting ready to exit bankruptcy tomorrow, as soon as the court's sale stay expires.

"The parties are prepared to close immediately upon the expiration of the stay on Thursday afternoon," Matthew Schwartz, an assistant US attorney, said in court records cited by the Detroit Free Press. "Indeed, the parties have been prepared to close since earlier this week."

The manufacturer waited until today to express their readiness to exit from under Chapter 11 protection because this is the last day in which those involved may raise objections. Since until now only two minor groups have objected the sale and both have been rejected, GM is getting ready to begin a new chapter in its existence.

Under the terms of the sale, 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 new company 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, and to reinvest in the business in the key areas of advanced technology and product development," GM said.