Thursday, June 4, 2009

Death of an American Icon as GM declares Bankruptcy

On Monday, GM will declare its official Chapter 11 bankruptcy. GM once called the American Icon is surely no longer the part of great American Icon Team. Others belonging to this team are still surviving including Apple Inc. and Microsoft. GM has definitely gone to the garage. Barack Obama is very disappointed with the news.

Death of an American Icon, GM - 1908-2009 :(

The largest US Auto maker will file its bankruptcy on Monday in the Federal Court in New York City, as confirmed by the FOX Business Network. Obama has decided to provide details on how to reconstruct GM as it was before. This will take place before the formalities of the bankruptcy filings. Even though GM has been declared bankrupt, it was found by the media, they negotiating for their two high profile cars, Hummer and Saturn.

GM will continue to negotiate with its creditors regarding proposal made by GM that would increase its shareholder's stake in a new restructured company to 10% that equals to increase the stake by 25% which is a good news for the bondholders.

The only thing that GM is now expecting is support from its creditors. They have also declared Fritz Henderson to remain the GM CEO. Al Koch, MD of AlixPartners, a business oriented company that helps in restructuring of bankrupted companies. Earlier they have guided K-Mart, the largest bankruptcy in US to come out of bankruptcy.

CM CEO, Fritz Henderson after declaring bankruptcy of GM.

Obama confirmed that the GM bankruptcy will involve the treasury spending of around $30.1 billion so that during bankruptcy period operations can be performed.

Now let's hope GM comes back to its original position once again. I surely don't want to see the death of an American Icon, GM.

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