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So it should not come as a surprise that GM has gone under, in fact, it is really quite a smart move.
GM enters the process with billions of dollars in federal funding as well as agreements to lay off labour, and will get $30 billion after the process to top the $20 billion it already has had, which will give the US government 60 percent in the auto giant, while the governments of Canada and Ontario will put up $9.5 billion for a 12 percent stake.
GM's European Opel and Vauxhall subsidiaries are already leaving the GM empire, under a separate rescue scheme, bond holders are being offered a debt-equity swap involving $27.1 billion in exchange for a 10 percent share and an option on another 15 percent.
By filing for bankrupty, GM actually achieves protection from its myriad creditors and will get a chance to clean up its books among other changes. At the very least, it is a step forward.
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