General Motors has reached one more mark in reorganisation when last night the Judge of southern area of New York of court of the USA on bankruptcies Robert Gerber has approved sale practically all actives General Motors. As the buyer of actives will act NGMCO, Inc. — the organisation financed by the Treasury Department of the US. Upon termination of transaction NGMCO, Inc. Will replace a name on General Motors Company and will continue the activity under historical brands GM.Partially as result of recent arrangements with Incorporated trade union of workers of motor industry (UAW) and trade union of workers of motor industry of Canada (CAW) the new company will receive the best actives GM and will use competitive structure of industrial costs.
New GM will possess smaller debt loading and more healthy industrial reporting which together with decrease in a point of break-even will allow to reduce risks, to carry out profitable activity at smaller volumes, and also repeated investment in key areas of high technologies and working out and production perfection. Affiliated companies GM outside of the USA will be got by the new company and, predictably, will continue the activity without stops.
The Headquarters new GM will be in Detroit, it will head Fritz Henderson on a post of the president and the main chief executive, and also Edward Whitacre — the chairman of board of directors.
«The healthy domestic motor industry of the USA remains vital for global economy, and we highly appreciate support which have rendered GM the governments of the USA, Canada and Ontario and tax bearers, and also a victim on which many have gone. This period became for us to the most difficult, and we had to accept many difficult decisions to draw attention to problems which ruined our business last decades. Now in our forces to put affairs in order and immediately to put the company on a direct way to success», — Mr. Henderson has declared.
The trust of pension medical insurance UAW and the government of Canada have possibility to put forward from itself on one representative in board of directors new GM. The trust of pension insurance has preferred a nominee of the checked up analyst of motor industry Stephen Girsky.Besides, the structure of board of directors new GM will include six real members of board of directors General Motors Corporation: Erroll Davis, Neville Isdell, Kent Kresa, Philip Laskawy, Kathryn Marinello and Fritz Henderson.
The name of the representative of the Canadian government, and also four additional members of board of directors which will be appointed by the Treasury Department of the US, become known later.
Under the order of judge Gerber the 4-day moratorium after which the transaction will be concluded has taken effect. GM expects transaction closing already in the near future. It is expected, that new GM it will be already primary completely functioning and competitive company thanks to the fascinating updated lineup, reduced, but more focused ruler of brands and a dealer network in process of perfection. Corresponding posts in the new company will be offered the employees working today in GM.
In connection with re-structuring today's corporation General Motors will replace the name on Motors Liquidation Company. The remained actives will be or are liquidated, or sold. The new board of directors will observe of this process, and also behind company liquidation under the direct control of Court on affairs about bankruptcy.