- Jul 6, 2009
BREAKING: Bankruptcy Judge OKs sale of good assets to New GM
Judge Gerbe gave the go-ahead on Sunday because he felt not doing so would cause "immediate and irreparable harm" to the 100-year-old company. The Detroit Free Press is reporting that the Treasury Department was threatening to cut off funding to GM if the sale didn't go through by July 10. Hundreds of GM's debtors requested that the sale be rejected, but Judge Gerbe's ruling likely means that the affected parties won't see much, if any money owed.
GM entered Chapter 11 bankruptcy protection on June 1, and if New GM actually does emerge from bankruptcy this week, the fourth largest bankruptcy in this country's history will have been completed inside of just six weeks. The timeframe is very similar to that of the much smaller Chrysler, which needed only 42 days to exit bankruptcy.
[Source: Detroit Free Press, Photo by Hiroko Masuike/Getty]