Monday June 1, 01:32 PM
General Motors files for bankruptcy
NEW YORK (AFP) - General Motors (NYSE: GM - news) filed for bankruptcy protection in New York Monday, in a plan that seek to allow the ailing US auto giant to re-emerge as a new, leaner company within 60 to 90 days.
The US industrial icon enters the process with billions in government financing and agreements already in place to cut labor costs, swap much of its debt for equity and reduce its liabilities by 50 percent.
Senior US officials detailed Sunday what they hope will be a swift process in which GM should be able to reemerge from bankruptcy protection as a new, leaner company within 60 to 90 days.
Officials said the process is expected to be similar to that of another key auto company Chrysler (Xetra: 710000 - news) , which is expected to emerge from bankruptcy protection this week after just over a month.
However, the GM process will not be "as speedy as Chrysler because GM is a far larger, far more complicated global company," senior administration officials cautioned.
President Barack Obama was to hold a press conference at 11:55 am (1555 GMT) Monday to discuss the state of the automotive industry.
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