GM Follows NYC Dealership Affiliate to Obtain NYC Venue for Its Bankruptcy
Just before 8 AM this morning (June 1), General Motors was busy sneaking its way into a Southern District of New York bankruptcy court (more on the forum shopping aspect of this from the Credit Slips blog) in hopes of getting the same accomodating treatment as Chrysler has just experienced. Here's GM's press release on the filing, Board of Directors statement, statement of Fritz Henderson, and FAQ about the filing. Here's the transcript of the White House press briefing late last night.
I previously suggested that a NYC filing was not possible for GM because it had no New York subsidiaries and was itself a Delaware corporation. What I failed to anticipate was the creativity of GM's lawyers who simply went out and got a company-owned DEALERSHIP called Chevrolet-Saturn of Harlem, Inc. , also a Delaware corporation, which is located in Harlem ,to make the first filing. Talk about the bankruptcy equivalent of gerrymandering!!!
So anyway here's the skinny on this morning's filing: Everyone is represented by Weil, Gotshal & Manges LLP led by Stephen Karotkin, Judge Robert E. Gerber will be presiding
First filing opening the gates of the Southern District of New York Bankruptcy Court paradise:
Chevrolet-Saturn of Harlem, Inc., Case No. 09-13558 For more information about this entity, click here.
Followed by GENERAL MOTORS itself, Case No. 09-50026
And bringing up the rear:
Saturn LLC, Case No. 09-50027
Saturn Distribution Corporation, Case No. 09-50028
All filings are to be made in the General Motors case and just to show you how fast everything is moving, take a look at the Notice for the "First Day" hearing scheduled for 4 PM today.
>>>>>> If you don't have access to PACER, you can follow the pleadings and get other information about the case from the claims trading agent website. As in the Chrysler bankruptcy, generally this will as up to date, or nearly so as the PACER docket.
As of 11 AM, the sale motion had yet to be filed, but soon will be [UPDATE: Almost 2;30 PM and here it is - apparently too big a file to upload - It's Docket #92 and you're own your own til I figure out how to get that technical detail fixed]
UPDATE: Here's the trasncript of President Obama's remarks on GM's bankruptcy filing, as well as a "Fact Sheet" setting forth the Administration's view as to how this should all play out.
If you're sufficiently interested, here's a link to streaming video of GM's news conference featuring Fritz Henderson.
>>>> and now for some other commentary:
- The Huffington Post blog has a great summary of events leading up to the filing, impact of the bankruptcy filing and what may happen next.
- The Chapter 11 Library.com blog has some interesting excerpts fromFritz Henderson's Affidavit made in connection with the filing: click here and here. Personally, i liked the part where he says:
Both directly and as a customer of literaly thousands of businesses that supply GM, the Company played a significant role in the development of a strong middle class in the United States... GM has also been instrumental in the United States becoming the world's major economic force.
Guess now's not the time for modesty...
- The NYT Dealbook has a fine FAQ style "primer" on the GM bankruptcy filing and its consequences.
- The WSJ Deal Journal has interesting "by the numbers" info about GM and its bankruptcy filing.
- The Root blog likens the filing to pulling off a band-aid slowly and suggests we ought to just get it over with.
