GM East Africa safe

William Lay, the Chief Executive of General motors East Africa (GMEA), has said their operations in the region will not be affected by its parent company's decision to file for bankruptcy.  Lay says creditors of General motors Corporation(GMC) have no claim on the East African Operation, as its assets are not used as security for GMC's obligation.

"The filing has nothing to do with the other operations of General motors including East Africa, we are debt free, profitable and it will be business as usual for us," says Lay.

"We will continue to generate our own cash and are responsible for our own viability.  We are a self sustaining operation and as such will continue to operate as normal."

The Detroit based automaker GMC entered into chapter 11 bankruptcy protections last week Monday, under which it will continue to operate under the same management while undergoing a restructuring, which is expected to be complete in the next three months.

The process will also see the American inject $30 billion into the company and Lay claim to 60 percent ownership.  It has however said it will be a reluctant shareholder and does not intend to get involved in day-to-day management of GMC.

The global economic downturn has been cited as among the factors that have seen the plunge in sales, to the point of posting losses to the tune of $30 billion last year.

GMC is the principle shareholder of GMEA, with a 60 percent shake.