After 40 days in bankruptcy, the beleaguered car company General Motors will emerge as a new firm later today. Once the world's largest and most profitable automibiles firm, GM has been facing financial troubles for the last few years and reported heavy losses each quarter.
The slump in car sales and the overall downturn in the economy caused GM to join hands with Chrysler and ask for a $37 billion loan from U.S. government earlier this year. But soon it became clear that this wasn't enough and the firms can't save themselves from going into bankruptcy.
On June 1, 2009, General Motors officially declared that it has gone bankrupt. It sought legal protection from its creditors after incurring losses of almost $81 billion in a four year period. The U.S. government took control of the situation and allowed GM to sell majority of its assets to a new firm in which the government would retain 61% stake.
GM's chief executive Fritz Henderson is expected to formally announce the sale later today and also talk about his strategies and plans to make the company profitable again.