Bankruptcy court approves GM sale
06 Jul 2009
The world's largest bankrupt auto giant, General Motors, won permission on late Sunday to sell its assets to a new government-backed company.
US district judge Robert Gerber issued his decision setting aside the objections of more than 850 parties.
Gerber sided with lawyers for the government and GM, who argued that the government-orchestrated restructuring plan was the only option available to save the automaker, once the pride 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," the judge added.
GM and the government are preparing to complete the sale transaction by the end of this week.
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