GM to get $30.1 billion more in federal aid for bankruptcy

DETROIT -- The government, which already has provided $20 billion in aid, says this will be the end of the taxpayers' financial support of GM.

Under bankruptcy-court supervision, GM and the task force aim to create two companies: a new GM with its best and profitable assets and the old company left with the rest. They hope the new GM can emerge within 60 to 90 days able to succeed in a smaller market; the old one will be liquidated.

"Today will rank as another historic day for the company — the end of an old General Motors and the beginning of a new one," the statement said.

Obama plans a press conference shortly before noon Monday to discuss GM's plans. GM, which will file in federal bankruptcy court in New York, also has scheduled a briefing.

Chrysler and GM first got government loans in December. Chrysler entered bankruptcy court April 30 and has pursued a similar company split. The new Chrysler will emerge as early as this week in a partnership with Italy's Fiat.

Unlike Chrysler, GM will not announce a companywide plant shutdown, according to a source briefed on its plan who was not authorized to speak ahead of the announcement.

As part of the bankruptcy plan, the U.S. government will hold about $8.8 billion in debt and preferred stock in GM, own about 60% of the common shares in the new company and name some directors to the new board, but the task force says it intends to keep its distance, except for major issues. The government says it intends "to dispose of its ownership interest" in GM as soon as it can.

The governments of Canada and the province of Ontario are chipping in $9.5 billion and will hold $1.7 billion in debt and a 12% stake. A United Auto Workers retiree health trust will own 17.5%. Bondholders will own 10%. Over the weekend, 54% of the bondholders OK'd the plan, which gives them warrants that could raise their stake to 25%. That backing should help GM navigate the bankruptcy.