FILE - In this Dec. 12, 2008 file photo, the General Motors logo is seen outside the GM headquarters in downtown Detroit. General Motors Corp. has agreed to take on responsibility for future product liability claims, according to documents filed in federal bankruptcy court in New York on Friday June 26, 2009. The new company will now assume responsibility for future claims involving vehicles made by the old company. (AP Photo/Carlos Osorio, File)
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
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'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.