July 6, 2009
Judge approves sale of GM
U.S. Bankruptcy Court Judge Robert Gerber approved the sale of General Motors Corp. to salvage the company in the midst of a severe slump.
Bankruptcy courts have the power to authorize sales of assets at a time when there still is value to preserve -- to prevent the death of the patient on the operating table, Gerber wrote in a 95-page opinion, The New York Times reported Monday.
Gerber said GM could proceed with the sale despite more than 850 objections to the restructuring plan filed in court. The plan had largely been ironed out before GM filed for court protection June 1. The deal includes GM selling most of its viable assets to the governments of the United States and Canada and to the United Automobile Workers union.
The company's unprofitable assets will be liquidated. Twelve of GM's 20 factories are expected to close at the cost of 21,000 jobs. GM is also expected to sever ties with about 2,300 of its 6,000 dealerships.