NEW YORK -- It's a difficult, but very important day for General Motors, said company president Fritz Henderson on Monday.
The company flied for bankruptcy protection in the U.S. on Monday. GM's agreements with the United States Treasury and the governments of Canada and Ontario provide a fast track plan to a leaner company, Mr. Henderson said.
"The new GM will have a significantly stronger and healthier balance sheet," he said.
Initially, the new GM will be owned primarily by the U.S. Treasury Department, the governments of Canada and Ontario, the United Auto Workers retirement health care VEBA trust and unsecured creditors, mostly bondholders of old GM, Mr. Henderson said.
The U.S. is set to invest $30 billion into GM, which translates into an approximate 60-per cent stake in the company.
The news GM was filing for bankruptcy protection in the U.S. came on the same day sales of Chrysler's assets to Fiat were approved by a U.S. court. Some said a quick, surgical bankruptcy for Chrysler would not be possible. They were wrong, U.S. president Barack Obama said.
GM is very different than Chrysler and it's a much larger and more complex company so it will likely require more time to get through the bankruptcy process, he said. But the company worked tirelessly to meet requirements and reached a viable, achievable plan, President Obama said.
This is the end of the old GM and the beginning of a new GM, the president added.
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