2009-+GM+Declares+Bankruptcy+G4


 * GM Declares Bankruptcy - 2009[[image:gm.png width="166" height="139" align="right" caption="GM Logo" link="http://brotherpeacemaker.files.wordpress.com/2009/02/gm_logo.jpg"]] **

Overview
General Motors Company, also known as GM, is a United States based automaker with headquarters in Detroit, Michigan. GM was the world's 18th largest corporate entity and third largest automaker as ranked by 2008 revenues on the Fortune Global 500. General Motors was founded on September 16, 1908, in Flint, Michigan, as a holding company for Buick, then controlled by William C. Durant. It acquired Oldsmobile later that year. In 1909, Durant brought in Cadillac, Elmore, Oakland and several others. Also in 1909, General Motors acquired the Reliance Motor Truck Company of Owosso, Michigan, and the Rapid Motor Vehicle Company of Pontiac, Michigan, the predecessors of GMC Truck. Growth of GM would last into the early 1980s when it employed 349,000 workers and operated 150 assembly plants.

**Central Issue**
On July 10, 2009 NGMCO Inc. purchased the ongoing operations and trademarks from General Motors Corporation. NGMCO Inc. changed its name to General Motors Company, marking the emergence of a new operation from the "pre-packaged" Chapter 11 reorganization. Under the reorganization process, termed a 363 sale, 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. The new company plans to issue an initial public offering of stock in 2010.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.

Conlusion
The impact of the GM going bankrupt was felt all around the United States. Many people in the state of Michigan and around the U.S. lost their jobs due to General Motors going bankrupt. Currently the city of Detriot is in an economic crisis. Currently General Motors does not hold a stock, and in turn the United States lost one of their biggest businesses in the past century.