July 6, 2009

GM expects sale by week’s end

U.S. auto giant General Motors Corp. said it would conduct a sale of its valuable assets by the end of the week.

U.S. Bankruptcy Court Judge Robert Gerber Sunday 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.

GM Chief Executive Officer Frederick Fritz Henderson said Monday he expected the sale to close immediately after the appeal process is exhausted later this week, The Detroit News reported.

In a blog, Henderson wrote GM would emerge from bankruptcy operational and fully competitive with an exciting line of new products, a small and more focused brand portfolio and a clear mission to put the customer first.

There have been 850 objections to GM's restructuring plan filed in court. It is unknown how many will appeal Gerber's permission for GM to proceed with a sale.

The restructuring plan calls for GM to sell its viable assets to the governments of the United States and Canada and to the United Automobile Workers union.

The company's unprofitable assets, including 12 of 20 factories, will be liquidated.