July 7, 2009
Two groups file appeals in GM case
Two groups objecting to General Motors Corp.'s bankruptcy plan have filed appeals in New York that could temporarily derail GM's sprint to sell its assets.
GM filed for bankruptcy June 1 and was granted permission Sunday to sell its good assets in a restructuring plan that gives large shares of the company to the U.S. and Canadian governments and to the United Auto Workers union.Bankruptcy Judge Robert Gerber scheduled a hearing for 7 p.m. Tuesday to hear arguments on the appeals filed by the Ad Hoc Committee of Asbestos Personal Injury Claimants and the Individual Accident Litigants, the Detroit Free Press reported Tuesday.
Both groups have asked that the U.S. District Court pass the appeals directly to the U.S. Court of Appeals.
The asbestos group said it would file a motion to stay the sale if the motions were not forwarded to the U.S. Court of Appeals. A lawyer for the Individual Accident Litigants said that group would not file for a stay of sale.
GM Chief Executive Officer Frederick
Fritz Henderson said Monday he expected the appeals process would be completed in time for GM to sell its good assets by the end of the week.