A US government official has announced that auto giant General Motors is filing for Chapter 11 bankruptcy protection.
The official said GM will file for Chapter 11 on Monday in a bankruptcy court in New York.
The official said the government will provide 30 billion dollars and will obtain 60 percent of the shares in a new, reorganized GM to be set up after the bankruptcy filing.
The government intends to temporarily nationalize the automaker and support its restructuring plans.
GM has already agreed with the United Auto Workers union on wage cuts and on letting the company reduce its contributions to the retiree health care plan.
Its bondholders initially rejected a proposal for debt reduction. But a majority of them later agreed to a sweetened deal smoothed by bankruptcy protection.
GM's bankruptcy filing is the largest in history for an American manufacturer. On April 30th, another major automaker, Chrysler, also filed for Chapter 11 bankruptcy protection.
2009/06/01 11:02(JST)
(JST: UTC+9hrs.)
http://www.nhk.or.jp/daily/english/01_12.html 
TOTW/F/M Award(s): 1
Linear Mode
