• Mar 5th 2011 at 12:33PM
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General Motors has been given the go-ahead to begin selling off the remaining old GM assets as part of the automaker's restructuring plan. According to The Detroit News, a federal bankruptcy judge approved the plan after a day-long hearing. Judge Robert E. Gerber is expected to issue a written opinion on the matter within the next few days, and the sale's confirmation date is set to be announced on March 31.
As part of the move, 610 million shares of old GM stock will be cancelled. Creditors have submitted verified claims of around $29.5 billion, and as part of the plan, those entities will receive $5 billion in new GM stock and warrants. That figure equates to around 15 percent of all new-GM stock.

In addition, Gerber moved to approve a $773 million environmental trust designed to help fund and oversee the cleanup of 89 former General Motors plants in 14 states. An additional plan is in the works to address additional environmental issues.

Those include an extra $536 million to cover cleanup costs and $300 million for demolition costs and property taxes.

Gerber's decision means that the last remaining embers of the old GM are officially dying out. The Detroit News reports that the company should cease doing business by no later than December 15.

[Source: The Detroit News]

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