Business this week

General Motors entered bankruptcy protection. Although the recession helped push it under, the company had a long history of mismanagement and union intransigence. GM was once an emblem of America’s industrial might, but its bankruptcy, with debts of $172 billion, is the country’s biggest-ever industrial failure. The carmaker will receive another $30 billion in state loans. The American government’s restructuring plan leaves it with a stake of 60.8% in GM and the Canadian government with 11.7%. GM’s unions will take 17.5% and bondholders 10%. It is hoped that GM, like Chrysler, will spend only a short time in bankruptcy protection. See article GM found a buyer for its Hummer sport-utility vehicle brand, which came to symbolise the company’s fondness for gas-guzzling cars. The purchaser is a Chinese company. ... (link)