According to several sources, General Motors will be filing for Chapter 11 Bankruptcy as soon as Monday, June 1st, 2009.
For many, this comes as no surprise. Their stock price went below a dollar on Friday, and has been on a steep downward trend for the past year or so. (I only wish I had shorted the stock)
The questions that remain are many, and those questions are fairly complicated. What happens with the UAW contracts? What happens with the dealers? What happens to the bond holders? What happens with the money that taxpayers have involuntairily invested in the company?
By all accounts, this bankruptcy will be much more complex than Chrysler’s. Consequently, will take much longer to process the plan.
If you have friends or family that work for General Motors, or any of their dealers, please have them in your thoughts. The next several months are going to be a difficult road. I have to think that the brand of General Motors will still exist when it is all said and done, but in what capacity we will not know for some time.
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