Key Dates In GM's Slide To Bankruptcy
01 Juni 2009 - 4:55AM
Dow Jones News
Following are key dates in the recent events leading to Monday's
expected bankruptcy filing by General Motors Co. (GM):
Nov. 18, 2008: The chief executives of GM, Ford and Chrysler
testify in the first of two hearings in Congress. GM and Chrysler
warn they could run out of funds without help, and all three
executives ask for a combined $25 billion in aid. Lawmakers grill
them for business mistakes and for flying to Washington on
corporate jets. The executives' performances are later panned on
comedy shows such as Saturday Night Live.
Nov. 20: Congressional efforts to rescue the auto makers
collapse, as lawmakers say the industry lacked credible plans to
return to profitability. Democratic leaders tell GM and Chrysler to
submit turnaround plans by Dec. 2.
Dec. 4: The CEOs return to Congress with turnaround plans but
again face skepticism. Their request for aid jumps to $34 billion,
though Ford asks for a line of credit rather than a term loan.
Dec. 11: A second, final attempt to secure a relief package
fails in the Senate, due to a sharp partisan dispute over wages
paid to workers at the auto makers. Democratic leaders urge the
Bush White House to use Wall Street rescue funds on the auto makers
to avert what experts said would be a catastrophic collapse of the
auto sector.
Dec. 12: As the nation's economic outlook darkens, Bush relents,
saying he will consider using the Troubled Asset Relief Program on
the auto makers. He later commits a combined $17.4 billion to GM
and Chrysler.
Feb. 17: Obama appoints auto industry task force that includes
Wall Street financier Steven Rattner as a top adviser. The task
force spends weeks consulting company executives, creditors, union
officials and industry experts on industry restructuring.
March 5: GM's auditor raises "substantial" doubt about the car
maker's ability to keep going. GM's share price falls 36% that week
to $1.45.
March 19: The Treasury Department announces a $5 billion program
to aid struggling auto-parts suppliers, fearing that many are in
danger of falling into bankruptcy court.
March 29: The Obama administration announces the forced
resignation of GM chief executive Rick Wagoner. Fritz Henderson
takes over as CEO.
March 30: Obama, rejecting restructuring plans by GM and
Chrysler, sets new deadlines for the companies to reach stakeholder
agreements and prove their viability.
April 30: Chrysler LLC files for bankruptcy protection. Fiat
would take a 20% stake in Chrysler, which could rise to 35%. The
U.S. government would provide Chrysler up to $3.5 billion to
operate during the bankruptcy period and $4.5 billion in exit
financing. The U.S. Treasury would hold an 8% equity stake.
May 29: The United Auto Workers union ratifies a new labor
agreement with GM that includes concessions and provides the union
at least a 17.5% stake in the new GM through its retiree health
care fund.
May 30: GM bondholders accept a Treasury-backed offer to trade
up to $27 billion in debt for a 10% equity stake in a new GM.
-By Josh Mitchell, Dow Jones Newswires, (202) 862-6637,
joshua.mitchell@dowjones.com