General Motors Files For Bankruptcy Protection

by Dan Strumpf and Kimberly S. Johnson - June 1st, 2009 - Associated Press

The plan is for the federal government to take a 60 percent ownership stake in the new GM. The Canadian government would take 12.5 percent, with the United Auto Workers getting a 17.5 percent share and unsecured bondholders receiving 10 percent.

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It also moves billions in retiree health care costs off GM's books. In exchange for its ownership stake, $6.5 billion of interest-bearing preferred shares, and a $2.5 billion note, the trust will take on responsibility for all health care costs for retirees starting next year.

Under law the union would not have gotten 17.5% of the company, or $6.5 billion in interest bearing preferred shares, or a single dime of the $2.5 billion note. Active workers would have kept their jobs. Instead they get $9 billion plus 17.5% of the company. Plus they get to keep their jobs and retain some of the useless featherbedding and make work rules that drove the company into bankruptcy in the first place.

This is the most corrupt perversion of bankruptcy law ever attempted. If the bankrtuptcy is left to stand as is, the American people will see repeated infusions of tax payer bailout dollars to enrich the laziest, most useless and most corrupt workers and union in America. Does anyone think that this company can compete with the continued anchor of the UAW tied around its kneck?

Barack Obama has proved himself master of Chicago style corruption and payoff. Every single Democrat Representative and Senator should be driven from public office.