General Motors May File Bankruptcy By June
As the speculations come to an end, the Obama administration and the President himself are contemplating options to let General Motors go ahead and file bankruptcy. The new plan comes as "controlled bankruptcy" plan which falls somewhere between pre-packaged bankruptcy and court chaos.
The government and the company are discussing a probable bankruptcy plan which spells into quickly forming another company. The new company will hold most of the profitable part of the parent company. Other units which are actually not-so-profit-making lie under longer government bankruptcy control.
General Motors also has a word with the United Auto Workers Union before filing the bankruptcy that may probably be filed by June 2009. Although, automakers are still fighting to prevent the probable chance of filing bankruptcy but advisers at General Motors are working towards a common aim to preserve the best parts of the company or sell them off at the best price.
The basic aim of the whole plan is to show the consumers, tax payers and the government is that the new General Motors can still hold its ground in the auto world and survive on its own. The big brains at General Motors are thinking hard to shape up a new company and give a new face to the age old American auto giant.
Old components such as Saturn and Hummer would definitely not form a part of the new company. They would be definitely under longer bankruptcy period and would be ultimately sold or dissolved. The new company shall coordinate with the new company for some time and share some operational activities such as accounting and insurance until it eventually becomes independent.
[Via: cartradeindia]