“NEW YORK – General Motors filed for Chapter 11 bankruptcy protection Monday as part of the Obama administration's plan to shrink the automaker to a sustainable size and give a majority ownership stake to the federal government.
GM's bankruptcy filing is the fourth-largest in U.S. history and the largest for an industrial company. The company said it has $172.81 billion in debt and $82.29 billion in assets.
As it reorganizes, the fallen icon of American industrial might will rely on $30 billion of additional financial assistance from the Treasury Department and $9.5 billion from Canada. That's on top of about $20 billion in taxpayer money GM already has received in the form of low-interest loans.”Read More...
So finally they going for bankruptcy protection. Unlike Malaysia, you can’t have this special protection as it might be exploited by most of the people here. Well there is a bad and good about being a bankrupt, but I don’t think I am going to write all about it. Anyway here is a brief info about Chapter 11 bankruptcy protection.
Chapter 11, Title 11, United States Code From Wikipedia, the free encyclopedia
Chapter 11 is a chapter of the United States Bankruptcy Code, which permits reorganization under the bankruptcy laws of the United States. Chapter 11 bankruptcy is available to every business, whether organized as a corporation or sole proprietorship, and to individuals, although it is most prominently used by corporate entities. In contrast, Chapter 7 governs the process of a liquidation bankruptcy, while Chapter 13 provides a reorganization process for the majority of private individuals.
http://en.wikipedia.org/wiki/Chapter_11,_Title_11,_United_States_Code
