NEW YORK (AP) --
Where Does It Stand?
Monday marked Detroit-based GM's 36th day under bankruptcy court protection.
Late Sunday a bankruptcy court judge ruled that General Motors Corp. can sell the bulk of its assets to a new company, potentially clearing the way for the automaker to emerge from bankruptcy protection. The new company will be called "General Motors Co." The government will own about 61 percent, the United Auto Workers union 17.5 percent, the Canadian government 11.7 percent and the rest owned by unsecured bondholders.
Assets that GM does not sell to the new company will become part of the separate "old GM," which will be known as Motors Liquidation Co. Those assets will be sold to the highest bidder under court supervision. The old GM will include a smattering of properties, several of which are facilities already slated to be closed.
Attorneys representing people who have sued GM in auto accident cases filed paperwork Monday to appeal the ruling to a U.S. District Court in New York. Consumer groups have cautioned that people injured by a defective GM product before June 1, when the automaker filed for bankruptcy, would have to seek compensation from the "old GM," the collection of assets leftover from the sale, where they would be less likely to receive compensation.
Where Does It Stand?
Auburn Hills, Mich.-based Chrysler Group LLC on Sunday announced the remaining members of its new board of directors.
Serving as directors will be Douglas Steenland, who served as Northwest's CEO from 2004 until it was bought out by Delta Air Lines in 2008; George Gosbee, CEO of Tristone Capital Inc.; Scott Stuart, founding partner of Sageview Capital LLC; Ronald Thompson, board chairman of the Trustees for Teachers Insurance and Annuity Association (TIAA); and Stephen Wolf, chairman of R.R. Donnelly & Sons Co.
Chrysler, which emerged from Chapter 11 bankruptcy on June 11 under a new partnership with Fiat, said it expects to hold the first meeting of the nine-member board on July 29.