• Mar 5th 2011 at 12:33PM
  • 19
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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    • 1 Second Ago
      • 4 Years Ago
      These GM workers should take a pay cut!That would save LOTS of money!
      They're still being paid with all the benefits courtesy of the US taxpayer.
        • 4 Years Ago
        I think the entire workforce(executives, managers, assembly line, engineers) should have been replaced.

        Clearly none know how to run GM. They should have been replaced, new salaries, benefits.

        Plenty of people out there looking for a good job.
      • 4 Years Ago
      What a joke. New GM is supposedly swimming in cash (creative accounting.?) gets tax breaks due to the POS company that was old GM, but are off the hook for the environmental mess they've made.

      Clean up your own mess Government Motors, and leave the tax payers alone.!

      How disgusting.

      And they way things are going, New Government Motors stock will be penny stock soon. It is already worth less than the IPO price.

      What a failure of a company. How anyone can be a fan of failure is beyond me. As that is what bankruptcy is-failure.

        • 4 Years Ago
        You are absolutely correct.
        Screw these clowns who talk trash. They honestly don't have a clue.
        • 4 Years Ago
        Penny stock soon? Hardly. The government demonstrated that they'll bail them out if they fail. The only thing mitigating that moral hazard is the fleecing of the old GM creditors of $25B.
        • 4 Years Ago
        all those overpaid, clueless executives running GM bankrupt and into the ground are now receiving big bonus checks for their job well done.


        This has to be one of the worst fleecing of the American tax payers in history.

        I'm sorry but to receive all those billions from the truely hard working Americans to keep their jobs, a stipulation should have been a 10 year freeze on all raises, bonuses, a reduction in benefits, vacation, healthcare...

        • 4 Years Ago
        Hatred and Bigotry are two of the ugliest characteristics of humans.
      • 4 Years Ago
      IMO, creditors should have gotten everything that could reasonably be afforded from new GM. I'm certain that more than $5B is available.
      • 4 Years Ago
      If you were American, maybe you would have understood the impact that having two of our nation's largest auto makers die would have had on our economy, and the job losses that would have resulted.

      In a metro area of roughly 5 million like Detroit that depends on the viability of the domestic auto industry, the event would be catastrophic.

      Even you Aussies would have felt some of the impact, given Holden's relationship with GM.

      I don't like bailing out irresponsible corporations either, but in this case, we were in between a rock and a hard place.
        • 4 Years Ago
        att : Stang - GM doesn't just owe the United States Government money from thier mult-billion dollar bailout but other national coffers aswell whom assisted respective local GM operations such as Canada, some European countries (particuarly Germany) and ofcourse Australia.

        And, yes - you are 100% correct, GM is a very irresponsible company and if 'others' have to clean up the remaining mess from the so-called 'old' GM then they remain irresponsible.
      • 4 Years Ago
      /channeling Monty Burns:

      So that is the 'free' in free enterprise...
      • 4 Years Ago

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      • 4 Years Ago
      att : FordCosworth - i could'nt possibly have said it better myself. Infact, your comment holds so much truth you are right on the money. However ... watchout because now all the GM fanboys are gonna get upset.

      Fact is, why doesn't GM (old or new) clean up it's own mess - filthy, ignorant, arrogant pig of a company it is.
        • 4 Years Ago
        You're like a mozzie buzzing around, a complete yobbo. Stick to your own bizzo, figjam!
      • 4 Years Ago
      If i am reading this right, my tax dollars are being spent to clean up a large corporation's mess...
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