GM enters bankruptcy filing - Jacksonville Business Journal:

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Monday’s Chapter 11 filing by the 101-year-old automakerf — once the world’s biggest company and Westerj New York’s largest manufacturing employer for decades is among the largestin U.S. history and largest-evert U.S. manufacturing bankruptcy. Chapter 11, which allows the company to operate while protected from its pushes GM intoa fast-track bankruptcgy and provides $30 billion of additional taxpayer funds to restructure itself. Genera l Motors CEO Fritz Henderson said in a prepare statement that GM was being reinventeed and that the company is read y for the jobat hand.
"Thse economic crisis has caused enormous disruption in the auto but with it has come the opportunity for us to reinventyour business. We are going to do it once and doit right. The court-supervisec process we are pursuing provides us with powerful toola to accelerate and complete our as well as strong safeguards for our customers and our he said. The GM plan as detailec by U.S. officials would allow a much smaller GM to emergwe from court protection within 60 to90 days. GM also planas to close 11 U.S. facilities and idle anothere three plants by the endof 2010. GM’s Tonawanda engine plant, where 1,10o people work, will remain open.
The automakert has not provided an updated target for job cuts but was lookingy toeliminate 21,000 U.S. factory jobs from the 54,000 union membera it now employs. Also not immediatelyt clear iswhat GM’s bankruptcy filing will mean for ’s plantsw in Lockport, Rochester and three others. Generak Motors plans to take back the facilitiex from the former parts subsidiary that it spun off in according to a tentative deal reached last week between GM andthe UAW.
The factorieas in New York, Michigan and Indiana woulc operateunder Delphi’s union rules, but be considered part of GM, once The Lockport plant — Delphu Thermal Systems, which has 2,100 employees was founded as Harrison Radiatord Co. in 1910 and became part of GM in 1918. For 81 yearsz it operated under General Motors ownership until the independenttDelphi Corp. was formed. Delphi itself is operating under bankruptc court supervision having filed for Chapter 11 inOctobef 2005. The Troy, Mich.-based companh was ready to emerge from bankruptcy in April 2008 but those planse fell apart when a key investor dropped out ofa $2.
554 billion stock deal with the General Motors employs 92,000 in the United Statee and is indirectly responsible for 500,000 retirees. The U.S. government would hold a 60 percent financial interest in a reorganizecd GM and the UAW would takea 17.5 percenr stake. The governments of Canada and the province of Ontarip have agreed to a 12 percengt ownership stake in exchange forfinancial aid. GM bondholders would get 10 percent.