The US Government has so far provided 33 billion dollars of financing to the ailing General Motors, and it has argued in the US court that nobody else came out with an alternative solution, and the government cannot be expected to continue with its funding of General Motors indefinitely.
The government has said that it will in fact withdraw its funding to General Motors, if the bankruptcy proceedings are not cleared by July 10th.
The bankruptcy proceedings will relieve General Motors of over 30 billion dollars worth of liabilities instantly , and will help it access more funds from the US FED , once the court clears the proceedings.
The bankruptcy filing and related uncertainty is already taking its toll on GM sales, with the June 2009 sales down by 33%.