No Ted...they were bailing out GM when Bush was still in office.
Chapter 11 reorganization
"On July 10, 2009, a new entity, NGMCO Inc. purchased the ongoing operations and trademarks from General Motors Corporation.[32] The purchasing company in turn changed its name from NGMCO Inc. to General Motors Company, marking the emergence of a new operation from the "pre-packaged" Chapter 11 reorganization.[33][34][35] Under the reorganization process, termed a 363 sale (for Section 363 which is located in Title 11, Chapter 3, Subchapter IV of the United States Code, a part of the Bankruptcy Code), the purchaser of the assets of a company in bankruptcy proceedings is able to obtain approval for the purchase from the court prior to the submission of a re-organization plan, free of liens and other claims. It’s used in most Chapter 11 cases that involve a sale of property or other assets. This process is typical of large organizations with complex branding and intellectual property rights issues upon exiting bankruptcy.[36][37][38][39] The new company plans to issue an initial public offering (IPO) of stock in 2010.[40]
GM's remaining pre-petition creditors' claims are paid from the remaining assets of Motors Liquidation Company, the new name of the former General Motors Corporation, although the directors of that company believe its debts far outweigh its assets.[35][40] This means that while the former GM's bondholders may recover a small portion of their investment, former GM shareholders (now shareholders of Motors Liquidation Company) will likely not receive anything.[41]
Also on July 10, 2009, GM announced plans to trim its U.S. workforce by 20,000 employees as part of its reorganization by the end of 2009 due to economic conditions.[42]"
en.wikipedia.org |
