As was anticipated, General Motors today filed for chapter 11 bankruptcy protection in Manhattan, New York. GM proposes a complex restructuring plan that would sell of many GM brands including Saturn, Hummer, Pontiac and Saab. It remains to be seen whether GM will successfully emerge from bankruptcy given the complexity of the case, the possible bondholder litigation, and the novel issues surrounding the filing.
Chapter 11 filings can be an effective method for restructuring debt and otherwise returning struggling companies to health. For more information about chapter 11 bankruptcy, please visit our website.