QuoteNEW YORK (Reuters) - If General Motors Corp (GM.N) files for bankruptcy, as widely expected, its healthy assets will be quickly sold to a new company owned by the U.S. government, a source familiar with the situation said on Tuesday.
The source, who was not cleared to speak with the media and would not be identified, said the U.S. government would pay for the assets by assuming the automaker's $6 billion of secured debt and forgiving the bulk of the $15.4 billion of emergency loans that the U.S. Treasury has provided to GM.
Full Article:
http://www.reuters.com/article/euDealsNews/idUSTRE54H6AN20090520
In addition, several dealerships in Jacksonville will be closing:
http://www.jacksonville.com/business/2009-05-19/story/jacksonville_foreign_auto_dealers_expand_domestic_dealers_shrink
QuoteJacksonville GM parts warehouse will close
The Jacksonville General Motors parts warehouse is one of three regional parts warehouses and numerous GM plants that will close this year, the manufacturer has announced.
The 350,000 square foot parts warehouse, which moved from its prior location at Baymeadows Road and Philips Highway to 12751 Gran Bay Parkway West in 1998, employs 72, said David Moore, shop committee person for the United Auto Workers local 323.
The announcement, included in news that GM is also to close or idle numerous warehouses and assembly and powertrain plants as it filed for Chapter 11 today, didn't come as a surprise, Moore said.
full article: http://www.jacksonville.com/news/2009-06-01/story/jacksonville_gm_parts_warehouse_will_close
QuoteGM owes CSX almost $9 million
A CSX Corp. spokesman Monday said the Jacksonville-based railroad expects to get back some of the $8.9 million owed to it by General Motors Corp. following the automaker’s filing for Chapter 11 bankruptcy. CSX ships cars for General Motors.
“We’ve have had informal discussions about that they would assume our contract and wouldn’t be able to get out of bankruptcy until they made good,†said CSX spokesman Garrick Francis.
He said CSX reduced its exposure to General Motors by about half about a year ago. Francis said the company has carrier liens on all the goods that are in transit so it won’t lose money on those carloads. In total, GM owes its creditors about $172 billion.
http://jacksonville.bizjournals.com/jacksonville/stories/2009/06/01/daily16.html