General Motors Declares Bankruptcy

General Motors the largest US automaker and for many years the largest US company declared bankruptcy on June 1, 2009. The bankruptcy took place in the middle of the most massive economic recession in America and the world since the Great Depression of the 1930s. The bankruptcy was done in close coordination with the Federal government after both the prior Bush administration and the Obama administration in power at the time had extended to the company support. The US government provided debtor in possession financing bridge financing, in return the US government and the Canadian government together gained control of 70% of the company. The bankruptcy followed a few weeks after a similar small bankruptcy of the number three US automaker, Chrysler.