July 10, 2009 / 3:05 PM / 10 years ago

TIMELINE-GM emerges from bankruptcy

 July 10 (Reuters) - A new General Motors GMGMQ.PK emerged from bankruptcy protection on Friday, far more quickly than most industry-watchers had expected, as a leaner automaker aiming to win back American consumers and pay back taxpayers.
 Here is a timeline of GM’s recent struggles:
 Oct. 23/24, 2008 - General Motors and Chrysler, which at the time were discussing a merger, pledge to cut jobs and close plants as the downturn in auto sales deepens.
 Dec. 19 - The United States announces a $17.4 billion lifeline to Detroit carmakers from the $700 billion Troubled Asset Relief (TARP) program. GM is to receive $13.4 billion and Chrysler $4 billion. Ford says it does not need a loan.
 Feb. 17, 2009 - GM and Chrysler request nearly $22 billion in additional U.S. government loans.
 March 19 - The U.S. Treasury pledges $5 billion to aid auto suppliers crucial to the survival of the industry.
 March 29 - GM Chief Executive Rick Wagoner resigns.
 March 30 - Canada offers C$4 billion ($3.2 billion) in bridge loans to the Canadian branches of GM and Chrysler.
 — Russia pledges over $1 billion to its auto industry.
 April 24 - GM draws another $2 billion in government aid.
 April 27 - GM offers its final plan to reorganise outside bankruptcy by slashing bond debt, cutting a further 21,000-plus U.S. jobs and emerging as a nationalised automaker under majority control of the U.S. government.
 May 15 - GM drops up to 1,200 U.S. dealers.
 May 22 - GM borrows another $4 billion from the U.S. Treasury, taking the total government funding to keep it afloat since the start of the year to $19.4 billion.
 May 30 - Germany seals a deal with Canadian auto parts group Magna, GM and the U.S. government to save carmaker Opel from the imminent bankruptcy of its U.S. parent.
 — Magna will take over parts of the new European Opel activities from GM. Germany will provide 4.5 billion euros ($6.27 billion) in loan guarantees and Magna will lend Opel 300 million euros to cover short-term liquidity needs.
 May 31 - Investors holding about 54 percent of GM’s $27.2 billion of bonds indicate support for a U.S. Treasury-brokered swap that may help speed the way through bankruptcy.
 June 1 - GM files for bankruptcy. The United States will provide $30 billion of additional taxpayer funds to restructure the company so it can better compete with lower-cost Asian automakers.
 June 2 - Reaches a memorandum of understanding to sell its Hummer brand to Sichuan Tengzhong Heavy Industrial Machinery Co, a privately held Chinese heavy machinery maker.
 June 5 - Reaches a preliminary agreement to sell its Saturn brand to Penske Automotive Group (PAG.N).
 June 8 - Says it would cease production of medium-duty trucks by July 31 after attempts to sell the operation failed.
 June 16 - Strikes a deal with Sweden’s Koenigsegg, a niche manufacturer of some of the world’s fastest and most expensive sports cars, to sell Saab Automobile.
 June 25 - Receives final court approval to borrow up to $33.3 billion from the U.S., Canadian and Ontario governments.
 July 6 - A senior U.S. official says GM will get the remaining $20 billion in government bankruptcy financing over the rest of 2009 and could be ready to launch an initial public stock offering in early 2010.
 July 6 - A U.S. judge approves GM’s bankruptcy sale in a move that will allow the company’s most profitable assets to exit bankruptcy protection under government ownership.
 July 10 - Emerges from bankruptcy protection after the 40-day bankruptcy concludes with a deal that sold key operations and core brands, including Chevrolet and Cadillac, to a new company, majority-owned by the U.S. Treasury.         

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