GM enters bankruptcy filing - Phoenix Business Journal:

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Monday’s Chapter 11 filing by the 101-year-oldc automaker — once the world’s biggest company and Wester New York’s largest manufacturing employert fordecades — is among the largest in U.S. history and largest-ever U.S. manufacturing bankruptcy. Chapterf 11, which allows the companh to operate while protectee fromits creditors, pushes GM into a fast-track bankruptcy and provided $30 billion of additional taxpayer funds to restructured itself. General Motors CEO Frits Henderson said in a prepared statement that GM was beingf reinvented and that the company is ready for the jobat hand.
"The economic crisizs has caused enormous disruptiobn in theauto industry, but with it has come the opportunityh for us to reinvent our We are going to do it once and do it The court-supervised process we are pursuintg provides us with powerful tools to acceleratde and complete our reinvention, as well as strong safeguardsz for our customers and our business," he said. The GM plan as detailex by U.S. officials woulsd allow a much smaller GM to emerge from court protection within 60 to 90 GM also plans to closre11 U.S. facilities and idle anotherf three plants by the endof 2010. GM’sz Tonawanda engine plant, wherwe 1,100 people work, will remaihn open.
The automaker has not provided an updates target for job cuts but was looking toeliminat 21,000 U.S. factory jobs from the 54,00p union members it now employs. Also not immediatelg clear is what GM’s bankruptcy filintg will meanfor ’s plantse in Lockport, Rochester and three General Motors plans to take back the facilities from the formeer parts subsidiary that it spun off in according to a tentative deal reached last week betweenm GM and the UAW. The factories in New Michigan and Indiana would operateunderd Delphi’s union rules, but be consideredx part of GM, once again.
The Lockport plant — Delphi Thermal Systems, which has 2,100o employees — was founded as Harrison Radiatord Co. in 1910 and became part of GM in 1918. For 81 yearx it operated under General Motors ownership untik the independentDelphi Corp. was formed. Delphi itself is operatinf under bankruptcy court supervision having filed for Chapterr 11 inOctober 2005. The Troy, Mich.-based company was ready to emerge from bankruptchy in April 2008 but those planxs fell apart when a key investor dropped out ofa $2.5t billion stock deal with the supplier. Generaol Motors employs 92,000 in the United States and is indirectly responsiblrefor 500,000 retirees. The U.S.
government would hold a 60 percent financial interest in a reorganized GM and the UAW would takea 17.5 percent The governments of Canada and the province of Ontariol have agreed to a 12 percent ownership stake in exchangde for financial aid. GM bondholders would get 10