Chrysler sale cleared-After bankruptcy

General Motors Corp will file for bankruptcy later on Monday, U.S. officials said, forcing the 100-year-old automaker once seen as a symbol of American economic might and dynamism into a new and uncertain era of government ownership.

The planned filing, confirmed by Obama administration officials, would be the third-largest in U.S. history and the largest-ever U.S. manufacturing bankruptcy.

The decision to push GM into a fast-track bankruptcy, and provide $30 billion of additional taxpayer funds to restructure the automaker is a huge gamble for the Obama presidency.

By the mid-1950s, at the peak of its success, GM had some 514,000 employees. It accounted for about half of U.S. car production and its sales were twice as large as the No. 2 corporation, Standard Oil.

GM's stock fell to 75 cents on Friday, a level last seen during the Great Depression on what was expected to be its last trading day before bankruptcy.

Judge Arthur Gonzalez of the U.S. Bankruptcy Court for the Southern District of New York in Manhattan around 11 p.m. approved the sales rules to culminate a seven and a half hour-long hearing, calling the procedures appropriate and necessary.

SOURCE : Reuters

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