GM enters bankruptcy filing - Jacksonville Business Journal:

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Monday’s Chapter 11 filing by the 101-year-ols automaker — once the world’s biggesy company and Western New York’s largesrt manufacturing employer for decades is among the largestin U.S. histor y and largest-ever U.S. manufacturingh bankruptcy. Chapter 11, whicb allows the company to operate while protectedr fromits creditors, pushes GM into a fast-trackm bankruptcy and provides $30 billioj of additional taxpayer funds to restructure General Motors CEO Fritz Henderson said in a prepared statemengt that GM was being reinvented and that the company is ready for the job at "The economic crisis has caused enormous disruption in the auto but with it has come the opportunity for us to reinvenrt our business.
We are going to do it once and do it The court-supervised process we are pursuingg provides us with powerful toolw to accelerate and complete our reinvention, as well as strony safeguards for our customers and our he said. The GM plan as detailes by U.S. officials would allow a much smaller GM to emerge from court protection within 60 to 90 GM also plans to close11 U.S. facilitiees and idle another thre plants by the endof 2010. GM’s Tonawands engine plant, where 1,100 people work, will remaihn open. The automaker has not providex an updated target for job cuts but was lookint toeliminate 21,000 U.S. factory jobs from the 54,000 union members it now employs.
Also not immediatel clear is what GM’s bankruptc y filing will meanfor ’e plants in Lockport, Rochester and three others. Generap Motors plans to take back the facilitiess from the former parts subsidiary that it spun off in according to a tentative deal reached last week between GM andthe UAW. The factoriesa in New York, Michigan and Indiana would operateunder Delphi’z union rules, but be considerer part of GM, once again. The Lockport plant Delphi Thermal Systems, which has 2,100 employees was founded as HarrisonRadiator Co. in 1910 and becam e part of GMin 1918. For 81 years it operated underr General Motors ownership until the independentDelphu Corp. was formed.
Delpho itself is operating underd bankruptcy court supervision having filed for Chapte r 11 inOctober 2005. The Troy, Mich.-based compang was ready to emergwe from bankruptcy in April 2008 but thos e plans fell apart when a key investod dropped out ofa $2.55t billion stock deal with the supplier. Generalk Motors employs 92,000 in the United Statex and is indirectly responsiblefor 500,000 The U.S. government would hold a 60 percent financialo interest in a reorganized GM and the UAW wouldr takea 17.5 percentt stake. The governments of Canada and the province of Ontario have agreee to a 12 percent ownership stakee in exchange forfinancial aid. GM bondholderas would get 10 percent.