We intend to leave very quickly from Chapter 11

The bankruptcy of General Motors is no longer a myth. After having detained for seventy-seven years the number one global automotive title before displaced by Toyota in 2008, General Motors (GM) has asked yesterday the tribunal of implementation under Chapter 11 bankruptcy in New York. A month, day for day, after receivership of Chrysler, GM bankruptcy implementation, presented as a "therapeutic" by the White House, is the third most important history bankruptcy American after those of Lehman Brothers Brothers in September and Worldcom in 2002, with a total liability of 173 billion at March 31 (against 82 billion of assets). The constructor of Detroit, whose course had fallen Friday below $ 1 per action (94 dollars in April, 2000), is the logical conclusion of a long financial drift that saw him accumulate $ 88 billion of losses in five years, on bottom of fall in car sales. But it is also the only chance to ensure his eventual rebirth at the end of a restructuring plan led by the Government.

"Our goal is to limit our participation to the minimum necessary and to leave as soon as possible, as soon as the conditions for a"clean"output will be met," said the Secretary of the Treasury, Timothy Geithner, since Beijing. Ultimate Rally of creditors "forced crossing" of the bankruptcy: 54 of the holders of bonds voted Saturday for the conversion of 27 billion of debt in exchange for a stake of 10, with warrants (15), in the future restructured company. After the green light from the UAW (United Auto Workers), this new "shareholders sacrifice", by Barack Obama, will facilitate the reorganization of the constructor to take advantage of a procedure of "prepackaged bankruptcy". The Government's objective is to minimize the period of judicial remedy. "This is not as fast as for Chrysler, GM situation is much more complex, but the procedure should be concluded within sixty to ninety days", says the White House.

At the end of the bankruptcy proceedings, Treasury will become the main shareholder in 60 of the "new GM", in addition to some $ 8.8 billion of debts and preferential shares, to fund health coverage of the UAW (at 17.5), the bondholders (at 10) and the Government of Canada and the province of Ontario (12).

The "therapeutic fall" of GM is the heaviest bankruptcy in terms of social impact (with 80,000 direct jobs and indirect 300,000 through its network of dealers). "Our goal is to promote viable companies which can become quickly profitable and contribute to economic growth and employment without participation of the Government," said the Treasury emphasizing his willingness to get out quickly in the capital of GM.

UAW, "winner".

After having already granted public funding since December $ 19.4 billion, Treasury will grant a new extension of $ 30.1 billion in the new GM to give it the means of its recovery. The aim of the manoeuvre is to organize the rebirth of a viable Builder through the assignment of the "healthy" assets to a "new GM" Lite more than half of the liabilities. (Focusing on the most valuable brands (Cadillac, Buick, Chevrolet, and GMC), GM will shed its loss-making subsidiaries Pontiac, Hummer and Saturn), in addition to the assignment of Opel in Europe and its subsidiary Saab, which already was placed into receivership in Sweden.

"We intend to leave very quickly from Chapter 11." "The US Government does not want control of car manufacturers and our plan is to pay it back as quickly as possible," confirmed Vice-President of GM, Bob Lutz. Economist Edward Altman, New York University, one of the first to predict the collapse of the constructor in September 2008, the UAW Union is the "winner" of the operation. In contrast, the American taxpayer is likely to be "the biggest loser" this de facto nationalization.