Frederick A. Henderson Affidavit In The GM Case Part 1

Affidavit from CEO Frederick A. Henderson in the GM case: some tidbits (please excuse any typos)

"Both directly and as a customer of literally thousands of businesses that supply GM, the Company played a significant role in the development of a strong middle class in the United States.... GM has also been instrumental in the United States becoming the world's major economic force".

"Recent events... including both international competitive forces and the worldwide recession that has resulted in an economic contraction and dislocation not seen since the 1930s- have led to the dramatic financial distress of the worlds's largest automotive company".

"For the first quarter of 2009, GM's domestic automobile sales dropped by 49% compared to the corresponding period in 2008".

"As a result of the economic crisis, in November 2008, the Company was compelled to seek financial assistance from the Federal Government.  The government understood the draconian consequences of a failure and of a GM collapse.  The government also recognized the likelihood of a systemic failure throughout the domestic automotive industry and the significant harm to the overall U.S. economy from the loss of hundreds of thousands of jobs and the sequential shutdown of hundreds of ancillary businesses if GM had to cease operations"

"There are no other sources with either the financial wherewithal or willingness to provide such financing (DIP).  The U.S. Government has stated that it will not provide DIP financing absent the 363 Transaction.  Without such financing, these case quickly will plunge into a liquidation....."

More to follow.