70-413: Motors Liquidation Company ( MLC ), formerly General Motors Corporation , was the company left to settle past liability claims from Chapter 11 reorganization of American car manufacturer General Motors . It exited bankruptcy on March 31, 2011, only to be carved into four trusts; the first to settle the claims of unsecured creditors , the second to handle environmental response for MLC's remaining assets,
140-627: A going concern ". A qualified going concern audit letter like this is only issued by the auditors when the company is in extreme financial distress and it is likely that it may file for bankruptcy protection. March 12, 2009: GM's CFO Ray Young said that it would not need the requested $ 2B (~$ 2.76 billion in 2023) in March noting that the cost-cutting measures are starting to take hold. March 29, 2009: GM's Chairman and CEO , Rick Wagoner , agreed to immediately resign his position as part of an Obama administration automotive restructuring plan. Wagoner
210-644: A 12% stake, the United Auto Workers and Canadian Auto Workers unions with a 17.5% stake, and the unsecured bondholders of General Motors with a 10% stake. "Old GM" was renamed Motors Liquidation Company. A creditor meeting, at the New York Hilton , held by the United States Trustee Program , was scheduled for June 3, 2009. On July 10, 2009, the purchase of the ongoing operational assets and trade name of "old GM"
280-568: A 17.5% stake, and the unsecured bondholders of General Motors with a 10% stake. The selling company was Motors Liquidation Company ("Old GM") (see below ). A creditor meeting, at the New York Hilton Hotel , held by the United States Trustee Program , was scheduled for June 3, 2009. On June 1, 2009, GM announced that the Hummer brand would be discontinued. On October 9, they reached an agreement to sell their entire stake in
350-509: A beneficial financial payout, on credit default swaps held by these creditors. Due to a lack of transparency, there was no way to find out who the CDS protection buyers and protection writers were, and they were subsequently left out of the negotiation process. On March 29, 2009, the U.S Treasury committed to fund a government guarantee of General Motors' warranty liabilities, up to US$ 360.6 million (~$ 498 million in 2023). On May 27, 2009,
420-421: A broader response to the increasing urgency of GM's own cash flow problems. That was a result of Chrysler's senior bank debt currently trading at less than 50 cents on the dollar and because Chrysler's other owner – Daimler, formerly DaimlerChrysler – recently revalued its 19.9% Chrysler stake down to zero, which may or may not reflect its value in a potential sale. December 12, 2008: General Motors stated that it
490-666: A congressional hearing in Washington D.C. All three companies were unsuccessful in their attempts to obtain legislation to authorize U.S. government aid, and were invited to draft a new action plan for the sustainability of the industry. On December 2, 2008, General Motors submitted its "Restructuring Plan for Long-Term Viability" to the Senate Banking Committee and House of Representatives Financial Services Committee. Congress declined to act, but in December 2008
560-575: A deal with the Renault Group for vehicle replacements in 2012, but since that deal fell through Penske cancelled the planned sale. GM has said that the Saturn brand will be phased out by the 2010 model year, and the brand was declared defunct on October 31, 2010. On June 16, 2009, it was announced that the Swedish firm Koenigsegg Automotive AB and a group of Norwegian investors planned to acquire
630-661: A dealership in Manhattan that was owned by GM itself, filed for bankruptcy protection there, followed in the same court by General Motors Corporation (the main GM in Detroit), GM's subsidiary Saturn LLC , and Saturn LLC's subsidiary Saturn Distribution Corporation. All cases were assigned to Judge Robert Gerber . The filing by the dealership declared General Motors to be a debtor in possession . The Manhattan dealership's filing allowed General Motors to file its own bankruptcy petition in
700-513: A federal Manhattan court in New York on June 1, 2009, at approximately 8:00 am, planning to re-emerge as a less debt-burdened organization. The filing reported US$ 82.29 billion in assets. The case was assigned to U.S. Bankruptcy Judge Robert Gerber , who had previously presided over another high-profile bankruptcy case of Adelphia Communications Corp. Shortly after the Chapter 11 filing, it
770-560: A part of the Bankruptcy Code), the purchaser of the assets of a company in bankruptcy proceedings is able to obtain approval for the purchase from the court prior to the submission of a re-organization plan, free of liens and other claims. It is used in most Chapter 11 cases that involve a sale of property or other assets. This process is typical of large organizations with complex branding and intellectual property rights issues upon exiting bankruptcy. As ranked by total assets,
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#1732780149724840-509: A plan that would assemble all of their viable assets, including some U.S. brands and international operations, into a new company. Less than a week later, its Saab subsidiary filed for bankruptcy protection in Sweden. March 5, 2009: GM's independent public accounting firm ( Deloitte & Touche ) issued a qualified opinion as part of GM's 2008 annual report that stated "[these conditions] raise substantial doubt about its ability to continue as
910-406: A similar financial situation, warned that it, too, was nearly out of cash and might not survive much longer. December 18, 2008: President Bush announced that an "orderly" bankruptcy was one option being considered for both General Motors and Cerberus -owned Chrysler LLC . Sources said that setting up this type of "orderly" bankruptcy would be complicated because it would not only involve talks with
980-602: A speech from the White House four hours and three minutes after the court filing. The General Motors bankruptcy case was formally entitled In re General Motors Corp. , case number 09-50026 in the Southern District, Manhattan, New York. General Motors was represented by the New York specialist law firm Weil, Gotshal & Manges. The United States Treasury and an ad hoc group of the bondholders of General Motors Corporation were also represented in court. One of
1050-552: A third to handle present and future asbestos-related claims , and a fourth for litigation claims. Motors Liquidation Company's stock symbol was changed from GMGMQ to MTLQQ, effective July 15, 2009. MTLQQ stock was cancelled. Its unsecured creditors were issued stock for the Motors Liquidation Company General Unsecured Creditors Trust under the symbol MTLQU. On the morning of June 1, 2009, Chevrolet-Saturn of Harlem ,
1120-453: The Bush administration provided a "bridge loan" to General Motors with the requirement of a revised business plan. It said it needed $ 4.6 billion in loans within weeks, from the $ 18 billion it had already requested, and an additional $ 12 billion in financial support in order to stave off bankruptcy. On February 26, 2009, General Motors announced that its cash reserves were down to $ 14 billion at
1190-499: The Carlyle Group ), David Bonderman (of TPG Capital ), Robert D. Krebs (a former railroad executive), Patricia F. Russo (the former CEO of Alcatel-Lucent ), Ed Whitacre (GM Chairman) and Fritz Henderson (GM CEO). In addition to selling off brands and killing brands like Pontiac and Goodwrench, General Motors Company restructured its brand architecture and adopted a new corporate identity. The practice of putting
1260-599: The Dow Jones Industrial Average and replaced by Cisco Systems . From Tuesday June 2, old GM stock has traded Over the Counter ( Pink Sheets / OTCBB ), initially under the symbol GMGMQ and subsequently under the symbol MTLQQ. On July 10, 2009, a new entity completed the purchase of continuing operations, assets and trademarks of GM as a part of the 'pre-packaged' Chapter 11 reorganization. As ranked by total assets, GM's bankruptcy marks one of
1330-605: The Saab brand from General Motors . GM would have continued to supply architecture and powertrain technology for an unspecified amount of time. On November 24, 2009, it was announced that the sale of Saab to the Koenigsegg Group had collapsed. "We're obviously very disappointed with the decision to pull out of the Saab purchase," said GM CEO Fritz Henderson in a statement. "Given the sudden change in direction, we will take
1400-720: The Saturn brand would be sold to the Penske Automotive Group . GM would continue building the Aura , Outlook and Vue for Penske for two years. However, the Penske deal failed and the Saturn division became defunct. On June 16, 2009, it was announced that Koenigsegg and a group of Norwegian investors planned to acquire the Saab brand from General Motors . GM would continue to supply architecture and powertrain technology for an unspecified amount of time. It also becomes
1470-497: The United States Bankruptcy Court for the Southern District of New York , its preferred court. Normally, a company would file for bankruptcy in the courts located either in the state where the company is incorporated (which for GM was Delaware ), or where it conducts operations (which would have been Michigan , where the company was headquartered). General Motors' attorneys, however, preferred to file in
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#17327801497241540-499: The United States Bankruptcy Court for the Southern District of New York , its preferred court. Normally for such cases, the company would have filed in the courts located in the state(s) where the company is incorporated, or where it conducts operations, which for Detroit -headquartered General Motors would have been the courts in Michigan or Delaware , where it is incorporated. General Motors' attorneys, however, preferred to file in
1610-832: The "GM Mark of Excellence" on every car, no matter what the brand, was discontinued in August 2009. The company moved from a 'corporate-endorsed, hybrid-brand' architecture structure (where GM underpinned every brand) to a 'multiple-brand, corporate-invisible' brand architecture structure. The company's familiar square blue "badge" was removed from its website and advertising, in favor of a new, subtle all-text logo treatment. October 10, 2008: GM considered exchanging its remaining 49% stake in GMAC to Cerberus Capital Management for Chrysler LLC , potentially merging two of Detroit's "Big Three" automakers. Acquisition talks involving Chrysler were cancelled, however, before November 7, 2008, as part of
1680-500: The Chapter 11 reorganization of "new GM" from the old is one of the largest successful corporate reorganizations in U.S. history, and the fourth-largest bankruptcy in U.S. history by total assets, following Lehman Brothers Holdings Inc. , Washington Mutual and WorldCom Inc. The same day, GM reported 88,000 U.S. employees, and announced plans to reduce its U.S. workforce to 68,000 by the end of 2009. On July 23, 2009, "new GM" announced its new board of directors: Daniel Akerson (of
1750-462: The Democratic and Republican political parties. Prior to the U.S. Senate's announcement, General Motors announced that it had hired several lawyers to discuss the possibility of filing for bankruptcy , with Chapter 11 bankruptcy being one of the options discussed. GM stated that "all options are on the table" for the company. Chrysler LLC , which is owned by Cerberus Capital Management , in
1820-524: The Hummer brand to China -based Sichuan Tengzhong Heavy Industrial Machinery Company Ltd. and a group of private investors (Mr. Suolang Duoji, a private entrepreneur with holdings that include the Hong Kong-listed thenardite producer Lumena, would have held the remaining 20 percent stake.) The sale would have net GM around $ 150 million. The deal would have included manufacturing to continue in
1890-526: The NGMCO Inc. ("New GM") to purchase the continuing operational assets of the old GM. Normal operations, including employee compensation , warranties , and other customer services were uninterrupted during the bankruptcy proceedings. Operations outside of the United States were not included in the court filing. The company received $ 33 billion in debtor-in-possession financing to complete
1960-548: The U.S. Treasury advanced a secured loan of US$ 360.6 million to GM, and GM issued a note to the Treasury for US$ 360.6 million, plus $ 24.1 million USD as additional compensation for the warranty advance, pursuant to the terms of the Warranty Agreement dated December 31, 2008, between GM and the U.S. Treasury. The loan funded a separate account established by GM Warranty LLC, a new special purpose subsidiary of GM that
2030-435: The U.S. Treasury, Canada, and a labor union, purchased the desirable assets of "old GM" via the bankruptcy process, thus renaming it to "General Motors Company" and forming a "new GM". This marked the emergence of a new operation from the "pre-packaged" Chapter 11 reorganization. The claims of former stakeholders and remaining pre-petition creditors of "old GM" would be handled by the "Motors Liquidation Company", with
2100-476: The U.S. would initially likely become the largest shareholder of the reorganized GM following a bankruptcy filing and re-emergence from bankruptcy. The U.S. government would invest up to $ 50 billion and own 60% of the new GM and the Canadian government would own 12.5%. Some observers also claimed that creditors were encouraged to push GM into bankruptcy protection because it would trigger a credit event, and thus
2170-409: The automakers, but also the unions and other stakeholders would have to be involved. December 19, 2008: President Bush approved a bailout plan and gave General Motors and Chrysler $ 13.4 billion in financing from TARP ( Troubled Assets Relief Program ) funds, as well as $ 4 billion to be "withdrawn later". As of February 14, 2009: General Motors was considering filing for Chapter 11 bankruptcy under
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2240-452: The bondholders of General Motors Corporation was also represented in court. One of the first motions filed in court was one to void the leases on the seven corporate jets, and corporate aircraft hangar at Detroit Metropolitan Wayne County Airport, for being no longer valuable to the company's business — a lease that the company had, according to its spokesman, found itself unable to escape in 2008 when it had tried to. On June 1, 2009,
2310-504: The brands and the good assets of the old GM, including the Buick , Cadillac , Chevrolet , GMC , GM Daewoo , Holden , Opel , Pontiac , SAIC-GM , SAIC-GM-Wuling , and Vauxhall brands. Pontiac was quickly phased out by October 31, 2010, GM Daewoo was renamed GM Korea in 2011 and the Daewoo brand was retired, Opel and Vauxhall were sold to Groupe PSA in 2017, and Holden was closed by
2380-539: The company only having $ 2 billion cash in hand. The United States Treasury had argued in court that it was the only source of such debtor in possession funding, and that without the money from the loan General Motors would have no option but liquidation . Other motions in the first-day hearing included motions to approve payments to key suppliers and to employees and distributors who are in possession of goods manufactured for General Motors. All motions passed in court without substantial objection. The case schedule laid out by
2450-435: The company's proposals had avoided tough decisions, and that Chapter 11 bankruptcy appeared the most promising way to reduce its debts, by allowing the courts to compel bondholders and trade unions into settlements. GM Chairman and CEO Rick Wagoner was also forced to resign. GM bondholders rejected the government's first offer, but the unions agreed to the preferential terms. A bondholder debt to equity counteroffer
2520-551: The court filing. The General Motors Chapter 11 filing formally was entitled " In re General Motors Corp.", and was case number 09-50026 in the Southern District, Manhattan, New York. General Motors was represented by the New York specialist law firm Weil, Gotshal & Manges. The United States Treasury was represented by the United States Attorneys Office for the Southern District of New York and Cadwalader, Wickersham & Taft LLP. An ad hoc group of
2590-648: The court gave interim approval to GM's request to borrow US$ 15 billion as debtor-in-possession funding, the company only having US$ 2 billion cash in hand. The United States Treasury argued in court that it was the only source of such debtor in possession funding, and that without the money from the loan General Motors would have no option but liquidation . Other motions in the first-day hearing included motions to approve payments to key suppliers and to employees and distributors who are in possession of goods manufactured for General Motors. All motions passed in court without substantial objection. The case schedule laid out by
2660-501: The court is as follows: General Motors auctioned off its assets in a section 363 sale . Because the price of these assets were very high, there was only one bidder in the auction, NGMCO Inc. ("New GM"). This company was formed by the United States government with a 60.8% stake, the federal government of Canada and provincial government of Ontario with an 11.7% stake, the United and Canadian Auto Workers unions VEBA fund with
2730-400: The court was as follows: On June 1, 2009, GM announced that the Hummer brand would be discontinued. The following day GM announced that it had reached a deal to sell the brand to an undisclosed buyer. Later, on June 2, 2009, the buyer was disclosed to be Chinese road equipment manufacturer Tengzhong . Tengzhong itself confirmed the deal on their website the same day. The proposed transaction
2800-422: The end no sale could be finalised and Hummer was declared defunct on May 24, 2010. On June 5, 2009, GM announced that the Saturn brand would be sold to the Penske Automotive Group . GM was to continue to build the Aura , Outlook and Vue for Penske for two years, however, as of September 30, 2009, the deal had fallen through. Penske had asked GM to extend the time it was to build Saturns until it could reach
2870-448: The end of 2008. G.M. lost $ 30.9 billion, or $ 53.32 a share, in 2008 and spent $ 19.2 billion of its cash reserves. Mr. Wagoner met with President Obama’s auto task force, and the company said that it could not survive much longer without additional government loans. On the March 30, 2009 deadline, President Barack Obama declined to provide financial aid to General Motors, and requested that General Motors produce credible plans, saying that
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2940-461: The end of 2020. MLC exited bankruptcy on March 31, 2011, and was immediately carved into four separate trusts; the first to settle the claims of unsecured creditors of MLC (General Unsecured Creditors Trust); the second ( RACER ) to manage, perform environmental activities at, and ultimately dispose of certain remaining MLC real and personal property assets; the third to manage asbestos-related claims against MLC (Asbestos Personal Injury Trust); and
3010-563: The federal courts in New York, because those courts have a reputation for expertise in bankruptcy. In a press conference later that day, the GM Chief Executive Officer, Fritz Henderson , stressed that he intended for the bankruptcy process to move quickly. In addition to Mr Henderson's press conference, President of the United States Barack Obama made a speech from the White House after
3080-401: The federal courts in New York, because those courts have a reputation for expertise in bankruptcy. In a press conference that began four hours and eighteen minutes after the filing, the GM Chief Executive Officer, Fritz Henderson , stressed that he intended for the bankruptcy process to move quickly. In addition to Henderson's press conference, President of the United States Barack Obama made
3150-471: The first motions filed in court was to void the leases on the seven corporate jets, and corporate aircraft hangar at Detroit Metropolitan Wayne County Airport, which the company said were no longer valuable to the company's business. A GM spokesman said that the company had found itself unable to escape the lease in 2008 when it had tried to. On June 1, 2009, the court gave interim approval to GM's request to borrow $ 15 billion as debtor-in-possession financing ,
3220-430: The former corporation's assets. General Motors was financially vulnerable before the automotive industry crisis of 2008–2010 . In 2005, the company posted a loss of US$ 10.6 billion (~$ 15.9 billion in 2023). In 2006, its attempts to obtain U.S. government financing to support its pension liabilities and also to form commercial alliances with Nissan and Renault failed. For fiscal year 2007, GM's losses for
3290-582: The fourth for litigation claims against MLC (Action Avoidance Trust). General Motors Chapter 11 reorganization The 2009 General Motors Chapter 11 sale of the assets of automobile manufacturer General Motors and some of its subsidiaries was implemented through Chapter 11, Title 11, United States Code in the United States bankruptcy court for the Southern District of New York . The United States government-endorsed sale enabled
3360-629: The largest corporate Chapter 11 bankruptcies in U.S. history. The Chapter 11 filing was the fourth-largest in U.S. history , following Lehman Brothers , Washington Mutual and WorldCom. A new entity with the backing of the United States Treasury was formed to acquire profitable assets, under section 363 of the Bankruptcy Code, with the new company planning to issue an initial public offering (IPO) of stock in 2010. The remaining pre-petition creditors claims are paid from
3430-433: The last brand/subsidiary from GM to be sold ( Hummer was first, followed by Saturn ). The deal failed on November 24, 2009. GM, however, requested Spyker Cars to acquire Saab from MLC a few weeks later. But however, MLC announced it would close Saab on December 19, 2009, although this plan was later reversed. Motors Liquidation Company had until January 7, 2010, for the deadline of the revised bid. The sale of Saab to Spyker
3500-419: The name General Motors Company. The purchase was supported by $ 50 billion in U.S. Treasury loans, giving the U.S. government a 60.8% stake. The Queen of Canada , in right of both Canada and Ontario , held 11.7% and the United Auto Workers , through its health-care trust ( VEBA ), a further 17.5%. The remaining 10% was held by unsecured creditors . In other words, a company called "NGMCO Inc.", financed by
3570-538: The new company planning to issue an initial public offering (IPO) of stock in 2010. The directors of Motors Liquidation Company stated that they believed shares in the "old" GM would eventually have no value since the company had far more debts than assets. Under the reorganization process, termed a 363 sale (for Section 363 which is located in Title 11 , Chapter 3, Subchapter IV of the United States Code ,
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#17327801497243640-447: The next several days to assess the situation and will advise on the next steps next week." On February 23, 2010 GM sold Saab to Spyker Cars , later renamed Swedish Automobile . The Saab brand would collapse under Spyker in 2012 after filing for bankruptcy . As part of a reorganization plan agreed to with the U.S., Canadian and Ontario governments, and the company's unions, General Motors filed for Chapter 11 bankruptcy protection in
3710-477: The process. GM filed for Chapter 11 reorganization in the Manhattan New York federal bankruptcy court on June 1, 2009, at approximately 8:00 am EDT. June 1, 2009, was the deadline to supply an acceptable viability plan to the U.S. Treasury. The filing reported US$ 82.29 billion in assets and US$ 172.81 billion in debt. After the Chapter 11 filing, effective Monday, June 8, 2009, GM was removed from
3780-563: The requirements set by the White House, a prepackaged bankruptcy is probable. President Obama reiterated that GM will be part of the future even if bankruptcy is necessary. April 22, 2009: GM stated that it will not be able to make their June 1, 2009, debt payment. April 24, 2009: GM announced that they will be scrapping the Pontiac brand in an effort to invest more money into their major brands (Buick, Cadillac, Chevrolet, and GMC). It
3850-400: The same court by General Motors Corporation (the main GM in Detroit), GM's subsidiary Saturn LLC , and Saturn LLC's subsidiary Saturn Distribution Corporation. All cases were assigned to Judge Robert Gerber . The filing by the dealership declared General Motors to be a debtor in possession . The Manhattan dealership's filing allowed General Motors to file its own bankruptcy petition in
3920-428: The stock symbol was changed to MTLQQ (" Motors Liquidation Company "). Despite these developments, the organization expressed optimism in the future success of a "new GM". On July 10, 2009, after an auction process and approval by Judge Gerber concluded, GM's continuing operational assets and trademarks were transferred to the sole bidder, a primarily government-owned entity called "NGMCO Inc.", which upon sale assumed
3990-404: The two plants that GM already uses to produce the Hummer trucks through June 2011, with a possible extension until 2012. On February 24, 2010, GM announced that the sale could not be completed with Sichuan Tengzhong and that they would discontinue the brand. They were approached by several other companies interested in purchasing the Hummer brand and began reviewing potential buyers. However, in
4060-441: The year were US$ 38.7 billion, (~$ 54.8 billion in 2023) and sales for the following year dropped by 45%. On November 7, 2008, General Motors reported it had projected it would run out of cash around mid-2009 without a combination of government funding, a merger, or sales of assets. Ten days later General Motors representatives, along with executives from Ford and Chrysler testified about their need for financial aid at
4130-514: Was announced that on Monday, June 8, 2009, GM would be removed from the Dow Jones Industrial Average , and replaced by Cisco Systems . This coincided with the announcement that Citigroup Financial would also be removed and replaced by insurer Travelers Co. $ GM was delisted from the NYSE. Beginning June 2, GM stock traded on the Pink Sheets OTC market under the symbol GMGMQ. On July 15,
4200-552: Was approved on January 26, 2010, and completed on February 23, 2010. Since the early 1990s, GM had been trying to close dealership locations under its Project 2000. At the time, GM had about 9,000 franchise dealers nationwide, most selling a single brand. Many of these locations sold few vehicles and supporting them was costly for GM. Under Project 2000, GM would eliminate or relocate dealerships, and also focused on establishing multi-brand locations, selling Buick, Pontiac and GMC vehicles or Cadillac, Hummer and Saab vehicles. The program
4270-559: Was completed and the purchasing entity, "NGMCO Inc", changed its name to "General Motors Company LLC." The new GM held an IPO on November 17, 2010, that raised an estimated $ 20.1 billion. By December 2013, the US government sold the last of its GM stock. By February 2015, the Ontario government sold the last of its 4% stake in GM, and by April 2015, the Canadian federal government sold the last of its own 8% GM stake. The "new" GM acquired most of
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#17327801497244340-606: Was controversial with dealers, many who didn't want to close their dealership or sell their franchise rights. However, Section 363 of the Federal Bankruptcy Code allowed GM to force thousands of dealerships to forfeit their franchise rights. Dealers accused GM of fraud and theft and formed the Committee to Restore Dealer Rights . The group helped draft HR 2743 in 2009, which asserted the action taken by GM to consolidate its dealer network without compensation
4410-472: Was expected to keep a 35% minority stake in the new company. It was announced on November 3, 2009, that the GM board had decided not to sell off Opel. However, after the reorganization in 2017, Opel and Vauxhall would later be sold to Groupe PSA for $ 2.3 billion (~$ 2.81 billion in 2023). On the morning of June 1, 2009, Chevrolet-Saturn of Harlem , a dealership in Manhattan that is owned by GM itself, filed for bankruptcy protection there, followed in
4480-441: Was formed to operate the warranty program. GM also on May 29, 2009, contributed $ 49.2 million to GM Warranty LLC to fund the program. On May 30, 2009, it was announced that a deal had been reached to transfer New Opel ( Opel plus Vauxhall , minus Saab ) assets to a separate company majority-owned by a consortium led by Sberbank of Russia (35%), Magna International of Canada (20%), and Opel employees and car dealers (10%). GM
4550-431: Was ignored. Efforts to sell General Motors' European operations ran into difficulties, as the corporation was expected to file for bankruptcy protection by June 1, 2009. United States government officials suggested that, if they were satisfied with the company's plans to restructure, the U.S. government would take at least a 50% equity stake and reserve the right to name board members . On May 31, 2009, news broke that
4620-443: Was illegal. However, HR 2743 died in committee, and was never reintroduced. GM's assets were sold in a section 363 sale . Because the price that these assets were expected to sell for was very high, there was expected to be only one bidder in the auction, a new company NGMCO Inc. This company had been formed by the United States government with a 60% stake, the federal government of Canada and provincial government of Ontario with
4690-421: Was nearly out of cash, and may not survive past 2009. The U.S. Senate voted and strongly opposed any source of government assistance through a bailout bridge loan (originally worth $ 14 billion in emergency aid) which was aimed toward helping the struggling Big Three automakers financially, despite strong support from President George W. Bush and President-elect Barack Obama , along with some mild support from
4760-634: Was replaced by Fritz Henderson . In announcing that plan, on March 30, 2009, President Obama stated that both GM and Chrysler may need to use "our bankruptcy code as a mechanism to help them restructure quickly and emerge stronger". He also announced that the warranties on cars made by these companies would be guaranteed by the U.S. Government . March 31, 2009: President Barack Obama announced that he would give GM 60 additional days to try and restructure their company and prove their viability. If they succeeded, Washington would provide General Motors with additional bridge loans. However, if GM could not meet
4830-495: Was scheduled to close in the third quarter of 2009, subject to customary closing conditions and regulatory approvals; financial terms of the agreement were not disclosed. Chinese regulators refused to allow for the purchase of the brand and GM decided on February 24, 2010, to retire the brand. Despite the failed sale, GM discussed entertaining interest in part of the Hummer brand, subsequently made no effort in that direction, leaving Hummer to close. On June 5, 2009, GM announced that
4900-574: Was the second discontinuation of a major GM brand in the 21st century, after Oldsmobile (which ended production in 2004). May 4, 2009: German Economy Minister Karl-Theodor zu Guttenberg said Fiat (among others) might be interested in the GM European unit. June 1, 2009: GM filed for Chapter 11 Bankruptcy , the fourth largest filing in the United States history after Lehman Brothers , Washington Mutual , and Worldcom . On June 29, 2009, General Motors announced that they would discontinue
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