GM To Declare Bankruptcy Monday, Chief Restructuring Official Named

GM will officially declare bankruptcy tomorrow morning before the markets open. Additionally, the Obama Administration has put turnaround expert Al Koch in charge of, well, turning the company around. Fritz Henderson will remain GM CEO.

Al Koch is managing director of AlixPartners, a business consulting company involved in restructuring. He was placed in charge of K-Mart, the largest retail bankruptcy in U.S. History, and successfully guided the company out of the bankruptcy.

In order to reassure Americans, President Obama will hold a press conference at noon on Monday to announce the progress. The bankruptcy will involve the Treasury spending another $30.1 billion to keep GM in operations during the bankruptcy, which will give the government 72.5% of the restructured company.

[Detroit News]