General Motors plans on exiting bankruptcy later this week through the sale of most of its assets to a new entity backed by the U.S. Treasury Department. CEO Fritz Henderson wrote on GM’s FastLane Blog said that the company planned to close on the sale after the appeal process is completed.
“We expect the sale to close immediately after the appeal process is exhausted later this week, and for the new GM to be operational and fully competitive, with an exciting line of new products, a smaller and more focused brand portfolio, and a clear mission to put the customer first in everything we do,” Henderson said wrote in a blog post this morning.
The new GM, which will be known as General Motors Company, will be backed with $50 billion in U.S. government loans.
The new GM”s common stock will be owned by:
· U.S. Department of the Treasury: 60.8 percent
· UAW Retiree Medical Benefits Trust: 17.5 percent
· Canada and Ontario governments: 11.7 percent
· Bondholders: 10 percent
– By: Omar Rana
Source: Detroit News