When General Motors Corp. emerges from bankruptcy protection, it will technically be a brand-new, privately held company — yet it will be more publicly owned than ever, with Canadian and American governments holding a 72.5 per cent stake.
GM executives say the company will continue to release regular financial statements after it goes private, even though technically it will no longer have an obligation to do so.
“There will continue to be a significant level of disclosure,” chief financial officer Ray Young told Detroit radio station WJR-AM Thursday.
“In fact, the new GM will be the most public private company.”
The Detroit automaker filed for Chapter 11 Monday and is hoping to emerge in 60 to 90 days, smaller, leaner and less burdened with debt.
Without publicly traded shares, the automaker will no longer have to file regulatory documents that disclose quarterly earnings, major business transactions or executive compensation — even though as a nationalized company it will be more publicly owned than ever.
