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philipy
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BEST ANSWER  chosen by asker   |  philipy  |  May 31, 2009 10:59 PM
GM is not going to cease to exist.

It's about to file bankruptcy in order to have the protection afforded by US bankruptcy laws while it restructures itself. Apparently President Obama will be making a speech about this and why he supports the move on Monday.

The hope is that it will be able to exit the bankruptcy by Labor Day, which is Sept 7th 2009.

Therefore I don't expect the bankruptcy will have widespread economic effects in itself. It's just a part of the ongoing story of the troubles and restructuring of GM.

http://www.nytimes.com/2009/06/01/business/01gm.html?_r=1&hp

http://www.telegraph.co.uk/finance/newsbysector/transport/general-motors/5417945/GM-Car-maker-poised-to-rebuild-after-filing-for-bankruptcy.html

http://www.businessweek.com/magazine/content/05_50/b3963114.htm

Info on Chapter 11 bankruptcy:

http://www.moranlaw.net/chapter11.htm

http://www.sec.gov/investor/pubs/bankrupt.htm

http://en.wikipedia.org/wiki/Chapter_11,_Title_11,_United_States_Code
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