General Motors Corporation will file for bankruptcy Monday, ending months of speculation regarding the future of the country's largest automaker. According to CNN and other media outlets. President Obama will address the nation shortly before noon on Monday explain the proceedings and what happen to GM following the action.
Chapter 11 bankruptcy will hopefully allow GM to emerge with only its more profitable plants, brands, dealerships and contracts.
The Obama administration will commit another $30 billion on top of the $19.4 billion it has already given GM to cover its losses and fund its operations. The U.S. government will get a 60 percent equity stake in the new company after restructuring, as well as $8.8 billion
in debt and preferred stock.
As part of the restructuring, GM is expected to cut 20,000 jobs and close about a dozen plants by the end of 2010. The company has already said it will slash 4 percent of its network of 6,000 retail dealerships by next year and drop four of its brands — Hummer, Saab, Saturn and Pontiac.
General Motors was once country's largest private employer. But now only has small percentage of its former staff.
