GM Emerges From Bankruptcy, Sells Assets

General Motors Corp. completed its race through bankruptcy Friday morning, signing a contract with the U.S. government, a source close to the deal said.

Papers were signed at 6:30 a.m. at the offices of Weil, Gotshal & Manges that give the government 61 percent of the company with lesser portions owned by the Canadian government and the United Auto Workers union. Bondholders will also own a share, The New York Times reported.

The company will be temporarily named the Vehicle Acquisition Co., but soon will be renamed General Motors Co.

The plan for the company includes significant shrinkage. GM will no longer produce Saturn, Hummer, Opel or Pontiac brands. The assets that remain include Chevrolet, Cadillac and GMC.

Plans include closing factories and laying off 21,000 union workers.

Like Chrysler, which sold most of its assets to Fiat, the bankruptcy process was done at speeds that defy logic. GM filed on June 1 and emerged 40 days later.

GM planned a press conference for Friday morning.

Frederick "Fritz" Henderson will keep his post as the chief executive officer, while Edward Whitacre Jr. serves as the new chairman of the company.

United Press International

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