TBO.com - TBO is Tampa Bay Online

Judge OKs GM assets sale, clears path for Chapter 11 exit

ADVERTISEMENT

By TOM KRISHER

The Associated Press

Published: July 10, 2009

DETROIT - The path is now clear for General Motors Corp. to leave bankruptcy protection in record time as a leaner company that is better equipped to compete in a brutal global auto market.

On Thursday, a judge's order allowing GM to sell most of its assets to a new company went into effect despite a last-minute appeal by plaintiffs in a product liability case.

GM spokeswoman Julie Gibson said U.S. Bankruptcy Judge Robert Gerber's order became effective at 12 p.m. GM attorneys are drafting paperwork to close the sale quickly, after which GM will exit bankruptcy protection.

GM CEO Fritz Henderson will hold a news conference in Detroit today to explain executive cuts, management changes and the company's plan to make money by emphasizing quality and fuel economy. He will be joined by Edward Whitacre Jr., who will lead the board of GM.

The "new GM" will be government-owned but leaner and greener, cleansed of debt and burdensome contracts that nearly dragged it into liquidation.

John Pottow, a University of Michigan Law School professor who specializes in bankruptcy, said he expects GM to close the deal and emerge from bankruptcy on Thursday, in 39 days, a record for a company its size, he said.

Share this:

Loading Comments...

Email Print

ADVERTISEMENT