Bankruptcy-General-Motors-will-file-On-Monday-June1

Detroit-Washington--GM bankruptcy filing planned for Monday in New York.
Chrysler will file for bankruptcy, an Obama administration official confirmed to CNN today. The filing will follow failed efforts to reduce the amount of money the troubled automaker owed. The government would own 60 percent of GM. Obama to speak on auto industry on Monday.


The administration more confidence that the best path for GM may be a similar trip, where the claims of disgruntled creditors and dealers can be more easily resolved.


Still unknown is what part the Canadian government might play in the ongoing GM restructuring.

GM operates several plants north of the border. The Canadians agreed to invest about $3.5 billion in the Chrysler restructuring and control one of the nine board seats.

In the GM negotiations, the Canadians are poised to make a similar investment, but they are seeking assurances that the share of GM production in their country will remain the same.

"China isn't putting up the money, and Mexico isn't putting up the money," said Tony Clement, Canada's Minister of Industry. "But if we're putting up the money, just as the Americans are, then we have the right to protect our production capacity......"