Chapter 11

GM Reaches Breaking Point

American taxpayers can add another company to their portfolio: GM is expected to file for bankruptcy by Monday, as a debt exchange with bondholders that would have swapped $27 billion for a 10-percent stake in the company failed last night. Now, it appears that the government will have to take a 70-percent stake in the company, which is larger than originally expected. “The government will provide GM at least $50 billion to get the company through Chapter 11,” The New York Times writes, though some in Detroit think it could be even more. The Canadian government will receive a partial stake too for $8 billion in aid. Meanwhile, investors are lining up to buy the embattled automaker's European division, Opel. Chancellor of Germany Angela Merkel is seriously considering offers from two potential buyers: Fiat, the Italian company that already bought Chrysler, and Magna, a Canadian auto parts maker.