GM Files Bankruptcy

General Motors Corp, the world’s largest carmaker until its 77-year reign ended last year, filed for bankruptcy protection in the U.S. with a plan to create a 21st-century company that can compete in world markets.

GM reported $82.29 billion in assets and $172.81 billion in debt. The U.S. government will bankroll the transformation of the 100-year-old automaker, a victim of tumbling sales and higher gas prices. The U.S. plans to convert much of its $50 billion of loans to a 60 percent stake in the new entity, administration officials said. Today’s filing coincides with a deadline for GM to convince a government auto task force that it could reorganize out of court through debt and cost cutting.

The future of thousands of car industry jobs in Europe remain uncertain as General Motors files for bankruptcy after reaching a deal to sell off its European operations, including German automaker Opel.

Source : http://www.bloomberg.com/apps/news?pid=20601087&refer=top_news&sid=aZ94r84yT8Ds

http://edition.cnn.com/2009/BUSINESS/06/01/gm.europe/index.html