US Govt to Get 60% of General Motors after Expected Bankruptcy

General Motors World Headquarters located in the Renaissance Center in Detroit, Michigan, USA on 30 May 2009.

The ailing US car-making giant General Motors is expected to file for bankruptcy Monday, and to get a federal bankruptcy protection under a restructuring plan.

According to the restructuring plan, the United States government is going to own 60% of the GM, 12% will be owned by the governments of Canada and Ontario, a union health trust will own 17,5%, and the present bondholders of the company will own 10%, the Washington Post has reported.

The US President Barack Obama is expected to announce at a press conference on Monday an additional federal investment of USD 30 B in GM bringing the total US government aid to USD 50 M.

The US government had recommended to GM that by June 1 the company should present a plan for bailing out of its crisis situation through a restructuring of its production and expenditures. GM was either supposed to get additional federal aid if the plan appeared satisfactory, or was supposed to start a bankruptcy procedure.

 

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