UAW trust to get 17.5 percent of GM shares
(Detroit, MI) – (Detroit, MI) - AP
General Motors Corp. will give the United Auto Workers union 17.5 percent of its common stock, $6.5 billion of preferred shares and a $2.5 billion note to fund a trust that will take over retiree health care costs starting next year.
The funding for the trust is outlined in a summary of concessions that the company and union have agreed to as GM tries to restructure outside of bankruptcy.
The summary was obtained Tuesday by The Associated Press.
Meanwhile, Michigan officials are asking the White House to help auto suppliers survive a "critical" 60-to-90-day period following a possible Chapter 11 filing by General Motors Corp.
Michigan Gov. Jennifer Granholm and U.S. Rep. Sander Levin said Tuesday they asked Ed Montgomery to convey to the Obama administration their belief that suppliers will need additional assistance in the event of a GM bankruptcy.
Montgomery is President Barack Obama's director of recovery for auto communities and workers. He was in Detroit for a workshop on applying for federal grants and other financial assistance. Montgomery says he will take the issue to Washington.
Detroit-based GM faces a Monday deadline to finish restructuring or be forced into bankruptcy court.