What seemed improbable two months ago yet became very probable in the last week came to pass this morning: General Motors filed for Chapter 11 bankruptcy protection from creditors this morning in New York City.
The news was accompanied by a statement from the White House by President Obama. The president said GM now has “a viable, achievable plan” to restructure its operations, and predicted the company will be able to “progress toward making better cars.”
In announcing its decision to go ahead with a bankruptcy reorganization, GM also laid out the details of North American plants that will be closed or furloughed in the coming months. Meanwhile, Delphi announced it is a step closer to emerging from Chapter 11, under which it’s been operating for nearly 44 months.
While GM is getting used to the US Bankruptcy Court in Manhattan, Chrysler shortly will be vacating the premises. Its emergence from Chapter 11 may be delayed by a few petitioners, but the judge hearing the case isn’t brooking any objections to the deal with Fiat.
A historic day, indeed, with the biggest industrial bankruptcy in US history. More history will be made if and when GM emerges from this reorganization.