GM has had its bankruptcy sale approved by a federal judge, a move which will create a new company based on GM’s best assets majority-owned by the U.S. Treasury. The sale is now expected to go through formally on Thursday, after a four-day stay of order process, which will allow any appeals to be lodged.
Judge Robert Gerber said the sale would “prevent the death of the patient on the operating table.”
“GM cannot survive with its continuing losses and without the governmental funding that will expire in a matter of days,” he said.
Under the terms of the deal, new GM will be 60 percent owned by the U.S. Treasury and will include assets including Cadillac and Chevrolet.
“The U.S. Treasury, in making hard decisions about where to spend its money and make new GM as viable as possible, made business decisions that it was entitled to make,” said Gerber. “As nobody can seriously dispute, the only alternative to an immediate sale is liquidation – a disastrous result for GM’s creditors, its employees, the suppliers who depend on GM for their own existence, and the communities in which GM operates.”
GM’s unwanted assets, including unpopular brands and unneeded factories, will remain in court to be liquidated.
Source: Autocar