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New York US car maker General Motors filed for bankruptcy protection, marking one of the biggest collapses in the corporate history as the iconic entity grapples with global recession and plunging sales.
The century-old auto maker, which is surviving on American taxpayers money has filed for Chapter 11 protection with the US Bankruptcy Court, Southern District of New York.
General Motors’ move is backed by the Obama administration which is expected to be the major stakeholders, once the restructuring is completed.
While the Government is anticipated to retain as much as 60 per cent in General Motors, the remaining would be held by the union and creditors, among others.
According to the court filing today, General Motors has sought bankruptcy protection under Chapter 11.
The car maker has already received nearly USD 20 billion from the US Government and is expected to get more funds to tide over the bankruptcy process.
Chapter 11 bankruptcy protection allows the company to continue with its operations and would be protected from the creditors.