DETROIT (AP) - The new General Motors arose on Friday as lawyers
finished an all-night paperwork session transferring the automaker's good assets to a brand-new company controlled by the
The massive transfer of factories, money and intellectual
property was completed about 6:30 a.m., according to a person
briefed on the situation, clearing the way for a smaller and faster
company better equipped to compete in the brutally tough global
The person, who asked to remain anonymous because the deal
wasn't announced officially, said the signing meant the new GM had
emerged from bankruptcy.
One bankruptcy expert called GM's 40-day case the fastest ever
for a company of its size.
GM's warp-speed emergence from bankruptcy is expected to be
announced by CEO Fritz Henderson and new Chairman Edward Whitacre Jr. at a 9 a.m. news conference at the company's Detroit
Henderson is expected to announce details of the plan to make
new GM profitable again. The troubled automaker has lost more than
$80 billion in the past four years.
Once the world's largest and most powerful automaker, new GM is
now cleansed of massive debt and burdensome contracts that would
have sunk it without federal loans. Spurred on by the Obama
administration's support, the bankruptcy process was two day's
faster than crosstown rival Chrysler Group LLC's 42-day timeframe.
(Copyright 2009 by The Associated Press. All Rights Reserved.)