Bankruptcy Outline Calls For Creation Of New GM

Law360, New York (May 28, 2009, 12:00 AM EDT) -- General Motors Corp. unveiled the broad outline of a restructuring plan Thursday that would have the U.S. Department of the Treasury purchase and transfer GM assets into a new entity in which the government would have a nearly 73 percent stake.

The automaker also revealed that an important group of bondholders had signed off on the proposal.

Under the plan, submitted by GM in a regulatory filing to the U.S. Securities and Exchange Commission, the Treasury Department would purchase assets from the old GM and put...
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