GM bankruptcy: What you need to know

http://money.cnn.com/2009/06/02/news/companies/GM_bankruptcy_faq/index.htm

The General Motors bankruptcy is the fourth largest in history. The company's problems started when fuel prices crippled demand for GM's larger gas burners, including SUVs and trucks like the Hummer. As the recession mounted so did the decline in vehicle sales, especially since many consumers could no longer get loans to buy GM vehicles, and GM's market share fell. The Obama administration provided $19.4 billion to GM to try and keep it out of bankruptcy, But that wasn't enough. The government will provide another $30 billion to keep the company running during the Chapter 11 process. GM wil lose $37 billion worth of debt. Also, GM will lose its Saturn, Pontiac and Saab brands, along with Hummer, which is sold to a Chinese industrial company. The company has already said it will kill off Pontiac.

Chrysler LLC, a much smaller automaker, was able to shed $6.9 billion in debt and leave behind its unwanted assets, including eight factories and franchise agreements with 789 dealerships.  The good news in this is that American taxpayers will end up with a 60% stake, and the rest will be divided among the United Auto Workers union, GM's bond holders, as well as the federal and provincial governments of Canada and Ontario. Individual investors and mutual funds stuck with $27 billion worth of GM bonds will end up with stock in the new company worth a fraction of its prior value. I chose this article because I wanted to know more about this bankruptcy and understand it more, the website has much more information, people should read it. This article was presented fairly and very accurate. Of course I would use CNN again, well at least 4 more times.