GM Win Permission To Sell Assets |
| Washington Post - Jul 6, 2009 |
General Motors won permission late Sunday night to sell its assets to a new government-backed company, setting the stage for a historic restructuring plan that is at the heart of the Obama administration's overhaul of the ailing auto industry.
U.S. District Bankruptcy Judge Robert Gerber issued his decision over the objections of more than 850 parties and after three days of hearings that ended just before the long holiday weekend. In a 95-page opinion, Gerber sided with lawyers for the Treasury department and GM, who argued that the government-orchestrated restructuring plan was the only option available to save the largest U.S. automaker, once the crown jewel of American manufacturing.
"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," he wrote. "In the event of a liquidation, creditors now trying to increase their incremental recoveries would get nothing."
Read Full Article from Washington Post
- Posted: 2009-07-07 10:21:37
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