General Motor bankruptcy process

General Motor bankruptcy process

Introduction

The purpose of this study is to expand the boundaries of our knowledge by exploring some relevant information relating to the analysis of General Motor bankruptcy process. For decades. GM was synonymous with invincible industrial power. However, one of the leading companies in the world was declared bankrupt and was taken over by the U.S. government. Being the number 1 automotive organization for nearly a century, the company could not survive either the crisis in the sector or to their own managers. The U.S. carmaker General Motors was, for most of the twentieth century, the world's largest company in the world's largest industrial sector. From 1931 until it was overtaken by Toyota in 2008, ranked No. 1 worldwide in the manufacture of automobiles. All this glorious past, however, has done little when the car industry in the U.S. has fallen in to crisis. The giant has declared bankruptcy (the largest industrial bankruptcy in U.S. history), and is operated by the Government, in a temporary nationalization. The bankruptcy of GM has had a significant effect on the global economy (Pride, 2011). In the next section, the author will examine the major aspects of GM's bankruptcy process.

Discussion

The bankruptcy of General Motors is the third largest bankruptcy in U.S. history and confirmation is made by company president, Fritz Henderson, who signals the intention of going through a rapid process of restructuring. The multinational General Motors formally declared bankruptcy. The Obama administration has taken critical steps to achieve that goal, it buy earning assets and provide 30,100 million for the firm to continue operating in the coming months. Assets acquired by Washington are the basis of "the new General Motors", whose capital is divided between the Treasury Department (72.5 percent), the United Auto Workers (17.5) and creditors (10 percent). ...