GM has viable plan to exit bankruptcy: Obama

June 2nd, 2009 - 12:05 am ICT by IANS  

Barack Obama Washington, June 1 (DPA) US President Barack Obama Monday said he believed General Motors (GM) had developed a viable plan that will allow it to quickly exit bankruptcy.
His comments came after GM, the country’s largest carmaker, filed for bankruptcy Monday morning in a New York court.

“GM and its stakeholders have produced a viable, achievable plan that will give this iconic American auto company a chance to rise again,” Obama said.

“I am absolutely confident that if well managed, a new GM will emerge that can provide a new generation of Americans a chance to live out their dreams.”

GM’s reorganisation plan has the backing of about 54 percent of its creditors, as well as its top labour union. The Obama administration will back the process with another $30 billion in emergency funds.

Obama said he took heart from GM’s smaller rival Chrysler, which saw its own plan to exit bankruptcy backed by the same New York court Monday. Chrysler could exit court protection in the next few days under the management control of Italian maker Fiat.

“GM did what Chrysler has successfully done and filed for chapter 11 bankruptcy,” Obama said. “Chrysler’s extraordinary success reaffirms my confidence” that GM can exit court protection quickly.

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