Detroit, Michigan – General Motors is expected to file for bankruptcy protection on June 1, following a decision by the U.S. Department of the Treasury that would allow a new GM to acquire the assets of the old GM.
GM CEO Fritz Henderson will address the media on June 1, following remarks from President Obama. The government was forced to take a stake in GM to stop the company from being broken up.
The agreement will allow GM to seek a fast-track bankruptcy. The government has been promised up to 72.5 per cent of the company, US$8 million in debt, and $2.5 billion of preference shares in return for the funding it has already provided.