Judge OKs Sale of GM Assets to US-Owned Company
A federal bankruptcy judge has approved the sale of General Motors’ assets to a new company partly owned by the federal government.
U.S. Bankruptcy Judge Robert Gerber of Manhattan approved the sale late Sunday, after a three-day hearing, the Associated Press reports. “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,” Gerber wrote in a 95-page ruling.
Under the restructuring plan, GM will sell its good assets, including its Chevrolet, Cadillac, Buick and GMC brands, to a new company owned by the United States, Canada and a health-care trust owned by the United Auto Workers union, according to the New York Times and the Wall Street Journal (sub. req.).
The government plans to sell public shares in the company next year.
Steve Jakubowski, a lawyer for product-liability claimants, said he would appeal the ruling because the new car company won’t be liable in suits filed by car accident victims before the bankruptcy.
