The Obama administration ushered General Motors into chapter 11 protection on June 1, 2009. Like the Chrysler case, the federal government is looking to shepherd General Motors through the bankruptcy process as quickly as possible by reaching agreements with the major stakeholders prior to filing. Reportedly, the U.S. will provide GM with at least $30 billion in new financing to carry it through and out of bankruptcy, on top of the $20 billion in loans the government already has given the company, in exchange for a 72.5 percent equity stake in a new GM.
With this announcement, the American Bankruptcy Institute arranged for experts in automotive proceedings and business bankruptcy law for comment and analysis regarding General Motors’ filing. Peter S. Kaufman took part in this panel discussion