General Motors unveils bankruptcy protection suspense today

GM is set to usher in the most critical moment of its century-old career today. U.S. President Barack Obama said in a media interview last weekend that seeking bankruptcy protection should be the only option for GM. That makes it no surprise that GM's bankruptcy protection is also a court reorganization.　　Obama is expected to formally announce the announcement in the early morning of June 1 in the United States. and trade unions to cut labor cost agreements with the General Motors Company began 29th to conduct a two-day board meeting to ultimately determine the fate of the company.　　The same day, GM and the United Auto Workers Union (UAW) reached a "welfare for work" agreement to further sweep away the barriers to bankruptcy protection. Under the UAW agreement, some of GM's workers ' wages, including bonuses and Medicare, will be cut to meet the UAW's goal of "debt-to-equity swap" in GM's restructuring.　　GM agreed to close 14 factories and dismiss 21,800 people from its previous plan to close 16 factories and dismiss 23,000 employees by the end of 2011. In a statement, GM CEO Henderson said one of the shuttered factories will be transformed into a small car factory with an annual output of 160,000 vehicles.　　GM had planned to import small cars from Chinese factories, but it would guarantee the interests of American workers after adding new small car bases in the United States. The UAW, which holds about $20 billion trillion in GM debt, has already agreed with GM that it will pay $2.5 billion in cash three times before 2017, with the UAW holding a 6.5 billion dollar "new GM" preferred stock and 17.5% per cent of common equity and 2.5%　　Of the general stock subscription warrants. The main creditor agreed to "debt-to-equity swap" and GM's revised "Debt-to-equity swap" programme paved the way for GM's bankruptcy protection.　　GM had been trying to persuade creditors to trade about $27 billion trillion in debt for 10% of the restructured GM shares, but as only 15% of its creditors had accepted the plan, failing to meet the 90% minimum set by the government, the company finally declared the talks cracked on 27th. The Treasury then amended the debt-for-equity swap to give bondholders the right to acquire a further 15% stake in the restructured company at a lower price than the original 10% per cent equity valuation, that is, to increase their holdings of 7.5% per cent when GM has reached $15 billion and $30 billion trillion. The revised programme received the support of the main creditors.　　The US Treasury also demanded that bondholders who accept the new scheme agree to the government's bankruptcy reorganization. The subsidiary Opel Auto confirmed the buyer of GM's European subsidiary of the main brand Opel car has also been identified.　　GM and Canadian component maker Magna International 29th reached a preliminary agreement on the reorganization of GM's European subsidiary, GM, the company confirmed yesterday. Under the takeover plan, Magna and the Russian Savings bank jointly contributed 700 million euros, Magna would receive a 20% stake in the new Opel, and the Russian bankThe bank gained a 35% per cent stake and GM retained a 35% per cent stake, with Opel employees gaining a 10% per cent stake. The German government has also indicated that it will provide 1.5 billion euros in loan aid to Opel, but as a condition, the German government wants to minimise Opel layoffs in Germany.