Bankruptcy

Families USA Consumer Guide Outlines Strategies to Deal with Debt and Discusses Rights and Protections for Families Facing Medical Debt and Bankruptcy

November 12, 2009 -- Washington, D.C.—Even as Congress debates health reform proposals, millions of Americans—with and without health insurance—struggle to pay medical bills, and their numbers continue to grow. In response to this crisis, Families USA, the national organization for health care consumers, today released a consumer guide that offers strategies, tips, and warnings to consumers as they struggle to manage medical debt and to avoid bankruptcy.    » read more »

Increased demand for restructuring finance expected to continue through 2010

NORWALK, Conn. -- November 12, 2009 -- GE Capital, Restructuring Finance ended 3Q as one of the most active providers of debtor-in-possession (DIP) and plan-of-reorganization (POR) financing in the U.S. and Canada, arranging or deploying approximately $2 billion throughout the first nine months of the year.

DIP financing is used by borrowers to fund ongoing working capital needs as they restructure under Chapter 11. POR, or exit financing, is utilized to support working capital needs upon emergence from bankruptcy.    » read more »

Approval marks another step toward the launch of an independent new GM

2009-07-06 -- NEW YORK - General Motors achieved another milestone in its reinvention last night when Judge Robert E. Gerber of the U.S. Bankruptcy Court for the Southern District of New York approved the sale of substantially all of General Motors Corporation's assets to NGMCO, Inc., an entity funded by the U.S. Department of the Treasury.

In connection with the closing of the sale transaction, NGMCO, Inc. will change its name to General Motors Company and continue to operate under GM's historic corporate and sub brands. The approval marks another step toward the launch of an independent new GM.    » read more »

Co-sponsors two bills that would restore franchise agreements and guard dealers’ rights

Washington, June 10, 2009 -- As General Motors and Chrysler start shuttering more than 2,000 dealerships across the country, Congressman Jim Gerlach (PA-6th District) wants to make sure Detroit and Washington do not trample on dealers’ rights to a transparent and fair process.

The congressman has sponsored two bills, H.R. 2743 and H.R. 2750, that would guard against General Motors (GM) and Chrysler arbitrarily stripping protections from state franchising laws by hiding behind federal government-ordered bankruptcy.    » read more »

Joint Statement of Senators Kohl and Feingold and Representatives Ryan and Baldwin on their Meeting with GM Executives Today

June 10, 2009 -- WASHINGTON, DC – Today, U.S. Senators Herb Kohl and Russ Feingold and Representatives Tammy Baldwin and Paul Ryan met with executives from General Motors (GM) to discuss the GM facility in Janesville.

The delegation members met with Troy Clarke, Head of GM’s North American Division, and Tim Lee, Vice President of Manufacturing for General Motors. Last week it was announced that the Janesville plant was one of three GM facilities under consideration for retooling to make small cars. Following the meeting, the delegation members jointly released the following statement:    » read more »

Senator Sherrod Brown Questions Officials on Federal Assistance to Auto Industry and Restructuring Plans; Banking Committee Discusses Federal Assistance to Domestic Auto Industry

June 10, 2009 -- WASHINGTON, D.C. – U.S. Senator Sherrod Brown (D-OH), member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, attended a hearing today entitled “State of the Domestic Automobile Industry: Impact of Federal Assistance.” Brown’s remarks, as prepared for delivery, follow:

I want to thank our witnesses, Mr. Bloom and Dr. Montgomery, for joining us. I appreciate your service.

Over the past few months, I have had several conversations with each of you because the auto industry crisis is a crisis for my state.    » read more »

June 10, 2009 -- LANSING - Michigan Governor Jennifer M. Granholm today issued the following statement on Chrysler:

"Today is a landmark day in Michigan and U.S. manufacturing history.

With the approval of the courts and with the participation of new partners, the management and employees of the ‘new' Chrysler can resume the business of designing, engineering, manufacturing, selling and servicing cars and trucks for customers all over the world and help lead our nation toward a new green economy.

I stand with Chrysler employees and their families in celebrating this moment."

Source: Michigan Governor

GM Statement re: recent changes in GM stock price and volume

009-06-10 -- GM management has noticed a recent elevation in the volume and price of its common stock.

While GM does not control the market or its stock price, GM management strongly believes that any recovery for the common stockholders in the chapter 11 bankruptcy process is highly unlikely, even under the most optimistic of scenarios.

Stockholders of a company in chapter 11 generally receive value only if all claims of the secured and unsecured creditors are fully satisfied.

Source: GM

Pricing announced for the 2010 Corvette Grand Sport

2009-06-10 -- DETROIT - At the June meeting of the Greater Atlanta Automotive Media Association, Karen Rafferty, Chevrolet Product Marketing Director, today announced the recent production of the 1,500,000th Corvette at GM Bowling Green Assembly.

"The 1.5 millionth Corvette is a great example of how Chevy is America's Brand," Rafferty said. "For nearly 60 years we have built America's Sports Car and this milestone is a solid proof point."

The 1.5 millionth Corvette, built on May 28, is a white convertible 3LT with red interior and black top (similar to the first, 500,000th and 1 millionth Corvettes built in 1953, 1977 and 1992 respectively). The first Corvette rolled off the assembly line on June 30, 1953.    » read more »

Statement On The Plant Selection To Produce The New Small Car For GM

2009-06-10 -- On May 29, GM announced that we will build a future small, fuel-efficient car in the United States utilizing an existing UAW-GM assembly plant that is currently on standby capacity status.

The assembly plants in consideration are Orion (Michigan), Spring Hill (Tennessee) and Janesville (Wisconsin).

Given the importance of this small car program, and in an effort to move quickly to identify the plant, GM leadership has begun discussions regarding selection criteria with Federal and State government officials from Michigan, Tennessee and Wisconsin.

We hope to identify and announce the future production site of the small car within the next several weeks.

Source: GM

Sen. Hutchison: “Today is a sad day for 50 Texas small businesses and the communities they’ve served.”

June 9, 2009 -- WASHINGTON, DC - Today, U.S. Senator Kay Bailey Hutchison (R-TX), Texas senior Senator and Ranking Member of the Senate Commerce Committee, released the following statement regarding the closure of 50 automotive dealerships in Texas:    » read more »

June 9, 2009 -- WASHINGTON, DC - Today, U.S. Senator Kay Bailey Hutchison (R-TX), Texas senior Senator and Ranking Member of the Senate Commerce Committee, released the following statement regarding General Motors' decision to select Ed Whitacre, Jr. as the company’s new chairman once it completes its bankruptcy reorganization:

“Ed Whitacre is a distinguished business leader.

"His successful career running a FORTUNE 50 company will give him the range of experience necessary to stabilize and strengthen General Motors.”

Source: Senator Kay Bailey Hutchison (

June 8, 2009 -- WASHINGTON, D.C. – Assistant Senate Majority Leader Dick Durbin (D-IL) today called on the CEO of General Motors, Fritz Henderson, to bring more openness and transparency into the company’s restructuring process while in Chapter 11 bankruptcy. As dealerships throughout Illinois are notified that GM does not intend to renew their contract, many owners are left frustrated and confused.

“A vibrant automotive sector is crucial to the future of our manufacturing base in Illinois and throughout the country, and I support the Obama Administration’s efforts to help GM restructure,” said Durbin. “But I believe that such a restructuring should be executed fairly and openly and should result in a dealer network that is able to reach potential car buyers.”    » read more »

2009-06-09 -- Edward E. Whitacre, Jr., former chairman and CEO of AT&T Inc., will become chairman of the New GM when the company is launched later this summer, GM's interim Chairman Kent Kresa announced today. Kresa will continue to serve as interim chairman until the launch.

Whitacre and Kresa, along with current board members Philip A. Laskawy, Kathryn V. Marinello, Erroll B. Davis, Jr., E. Neville Isdell and President and Chief Executive Officer Frederick A. Henderson, will serve as the nucleus of the New GM board, providing management oversight and a continuing commitment to transparency and world-class standards of corporate governance.    » read more »

At hearing requested by Dorgan, questions raised about how dealers and consumers will be impacted

June 3, 2009 -- (WASHINGTON, D.C.) – At a Senate Commerce Committee hearing today, U.S. Senator Byron Dorgan (D-N.D.) questioned the President and CEO of both Chrysler and General Motors about the effects of their dealership closings in North Dakota and their plans to ensure dealerships and consumers are treated fairly.

James Press, President of Chrysler, and Fritz Henderson, CEO of General Motors, both testified at the hearing, along with John McEleney, Chairman of the National Automobile Dealers Association.    » read more »