‘New’ GM gets the go-ahead
A federal bankruptcy judge has cleared the way for a sale of the bulk of General Motors Corp.’s assets to a new entity, opening the door for the troubled automaker to emerge from Chapter 11 early this week.
The decision, handed down by Judge Robert E. Gerber in New York late Sunday night, came over the objections of some 850 parties.
They argued in court last week that the sale would shortchange creditors, dealers, car owners and others.
GM countered by saying that the plan to emerge from bankruptcy in this manner was the best for all parties, and that delaying such a sale could jeopardize the automaker’s chances of receiving further aid from the federal government, potentially forcing a complete breakup of the company.
Indeed, last Harry Wilson, a member of the Treasury Department’s autos task force, testified last week that the government had no intentions of funding GM after July 10.
Judge Gerber, in his decision, clearly agreed with that opinion.
By: latimes.com Read more >>
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