U.S.: General Motors files for bankruptcy

GM's bankruptcy filing listed that the company had US$82 billion in assets and had more than US$172 billion in debt.

GM's insolvency is the world's fourth largest. The company's "good" assets are to be sold off to the "new" General Motors, while the "bad" assets will remain in bankruptcy, to be liquidated at a later date.

During these bankruptcy proceedings, the U.S. government will provide another $30 billion in financing to the auto giant. The U.S. government will also become GM's largest stakeholder, owning up to 60 percent of the company.

The Obama administration stressed however, that it "had no desire to own equity stakes in companies any longer than is absolutely necessary and will actively seek to dispose of its ownership interest as soon as it is practical to do that."

Credits: JRC