Alexa
  • Directory of Taiwan

GM and Chrysler's bankruptcy cases at a glance

GM and Chrysler's bankruptcy cases at a glance

A summary of developments in the bankruptcy cases of General Motors Corp. and Chrysler LLC:
GENERAL MOTORS _ DAY 30
WHERE DOES IT STAND?: Tuesday marked Detroit-based GM's 30th day under court protection.
General Motors' bid to sell its "good" parts to a new company and emerge from bankruptcy protection began Tuesday as hundreds of lawyers converged on a Manhattan courthouse.
GM, whose June 1 filing for bankruptcy protection was the fourth-largest in U.S. history, is hoping to avoid a lengthy sale hearing that could drag out the process and postpone its emergence from Chapter 11.
On Tuesday, GM CEO Fritz Henderson was questioned for several hours by attorneys for the various parties challenging the sale, including bondholders, consumer groups and unions.
WHAT'S NEXT?: If it doesn't wrap up Tuesday night, the sale hearing is expected to continue Wednesday and possibly later into the week.
CHRYSLER
WHERE DOES IT STAND?: Auburn Hills, Michigan-based Chrysler Group LLC emerged from Chapter 11 bankruptcy earlier this month after a new company was created by the sale of most of the automaker's assets to a group led by Italy's Fiat Group SpA.
Chrysler's former financial arm said Tuesday that it will reduce its work force by 9 percent or more than 300 employees as it restructures, after losing its preferred lender status with the automaker.
GMAC Financial Services is now Chrysler's leading lender for financing Chrysler vehicle purchases and dealer inventories. Chrysler Financial, a company separate from Chrysler Group, said Chrysler's switch to GMAC, tight capital markets and a continued decline in auto sales have hurt the company's business portfolio, leading to the work force reductions.
Chrysler Financial employs about 3,400 people. The cuts will occur at the company's headquarters and eight business centers. A customer service center in Overland Park, Kansas will close Aug. 31.
WHAT'S NEXT?: Chrysler assets not sold to Fiat, including eight plants, remain under bankruptcy protection. Hearings to decide what to do with these so-called bad assets and to settle claims by the company's creditors will continue. The next hearing is scheduled for Tuesday.


Updated : 2021-05-13 12:17 GMT+08:00