Will the General Motors bankruptcy affect the stock price in market trading. General Motors filed for Chapter 11 bankruptcy to shrink the automaker and give ownership stake but not control to the federal government. The GM bankruptcy will affect stock investments and also workers and car owners. The chapter 11 also affects the big three U.S. automakers and auto parts suppliers stocks with its ripple effect.
GM stock advice has typically centered on GM news. The GM bankruptcy filing is one of the largest in U.S. GM has $170 billion in debts and liabilities vs $82 billion in assets. The board of directors authorized the filing of a Chapter 11 while remaining confident that a New GM can operate successfully in the intensely competitive U.S. market and around the world.
As it reorganizes General motors will receive $30 billion from the Federal Government and $9.5 billion from Canada. That's on top of about $20 billion in taxpayer money GM already has received in the form of low-interest loans. There still could be some sort of sale of GM in whole or in part. There could also be a GM buyout if another company moves to buy out General Motors, maybe a foreign company.
The plan is for the federal government to take 60 percent in GM. The Canadian government will own 12 percent, and UAW would own 17.5 percent share and unsecured bondholders receiving 10 percent. Existing GM shareholders are expected to be wiped out. Albert Koch, who led Kmart Corp. through its Chapter 11 will do the same for .
