Bankruptcy judge approves GM plan to sell assets - WAOW - Newsline 9, Wausau News, Weather, Sports

Bankruptcy judge approves GM plan to sell assets

NEW YORK (AP) -- A federal bankruptcy judge says General Motors can sell the bulk of its assets to a new company, potentially clearing the way for the automaker to quickly emerge from bankruptcy.

Saying "the only alternative to an immediate sale is liquidation," U.S. Judge Robert Gerber ruled late last night that the sale is needed to avoid "immediate and irreparable harm" to GM.

GM's government-backed plan for a quick exit from Chapter 11 bankruptcy protection hinges on the sale, which will allow the automaker to leave behind many of its costs and liabilities. The assets that GM does not sell to the new company will become part of the separate "old GM," which the company said Monday will be known as Motors Liquidation Co. It will be sold to the highest bidder under court supervision.

The Treasury Department has vowed to cut off funding to GM if the sale doesn't go through by July 10.

Hundreds of parties filed objections asking Gerber to reject the sale. It's unclear if any of those groups plan an appeal.

Online Reporter: Kelsi Schindler

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