Chapter 11 Bankruptcy | featured news

A federal judge approved a plan by General Motors to sell its best assets to a new, government-backed company, a crucial step for the automaker to complete its bankruptcy process.

Extended Stay Hotels, saddled with a huge debt burden from an $8 billion buyout, filed for Chapter 11 protection Monday.

The theme park operator filed for bankruptcy early Saturday in Delaware after failing to reach an agreement with lenders to reorganize its debt.

Eddie Bauer Holdings may file for bankruptcy court protection from creditors as soon as the end of the week, according to people familiar with the matter.

The Supreme Court on Tuesday cleared the way for the U.S. government-backed sale of Chrysler LLC to a group led by Italian carmaker Fiat SpA, a victory for the bankrupt automaker and the Obama administration.

General Motors Corp said it had reached a preliminary deal to sell its Hummer brand, part of its effort to shed half of its eight U.S. lines and leave bankruptcy court protection as a leaner company.

CEO Fritz Henderson calls the move 'a defining moment' in the company's reinvention. In trading, shares of GM dropped 28%. Meanwhile, Chrysler takes another step toward emerging from bankruptcy.

Approval of sale of assets to Fiat clears way for U.S. automaker to exit bankruptcy protection.

A majority of bondholders agree to swap their debt for a stake in a reorganized GM, which is expected to file for Chapter 11 on Monday.

Robert Nardelli, Chrysler's departing chairman and chief executive, said he expects the sale of the bulk of Chrysler's assets to a group headed by Italy's Fiat Group SpA to close Friday, assuming the judge overseeing the automaker's bankruptcy protection case approves the deal.