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BREAKING: Bankruptcy Judge OKs sale of good assets to New GM

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Filed under: Government/Legal, GM

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General Motors has cleared a major hurdle to get out of bankruptcy quickly, as U.S. Judge Robert Gerbe has finally given the automaker the go-ahead to sell off its best assets to a newly formed company that analysts have been calling "New GM". The new GM will include assets like the Chevrolet and Cadillac brands, plus plants and production facilities that haven't scheduled for closure. The old GM will consist of soon-to-be shuttered plants, the Pontiac brand and mountains of debt and liabilities.

Judge Gerbe gave the go-ahead on Sunday because he felt not doing so would cause "immediate and irreparable harm" to the 100-year-old company. The Detroit Free Press is reporting that the Treasury Department was threatening to cut off funding to GM if the sale didn't go through by July 10. Hundreds of GM's debtors requested that the sale be rejected, but Judge Gerbe's ruling likely means that the affected parties won't see much, if any money owed.

GM entered Chapter 11 bankruptcy protection on June 1, and if New GM actually does emerge from bankruptcy this week, the fourth largest bankruptcy in this country's history will have been completed inside of just six weeks. The timeframe is very similar to that of the much smaller Chrysler, which needed only 42 days to exit bankruptcy.

[source: Detroit Free Press, Photo by Hiroko Masuike/Getty]

BREAKING: Bankruptcy Judge OKs sale of good assets to New GM originally appeared on Autoblog on Mon, 06 Jul 2009 02:07:00 EST. Please see our terms for use of feeds.

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general-motors-renaissance-center-detroi While most of America was enjoying a long holiday weekend full of cookouts and fireworks, Judge Robert Gerber was overseeing a very different sort of explosive activity in Manhattan: the conclusion of the General Motors bankruptcy trial. Late last night, Gerber ruled in favor of General Motors' request to sell off bad assets and shift good ..

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Well GM has a new lease on life with no excuses now. They have a lot of good product in the pipeline just waiting to come out.

It will be interesting to see how they do now with a lot of the dead wood gone and obstiacals removed.

I am kind of excited as they have not flubbed much on their most recent new cars. Thwy just need now to earn a look and chance from the people they lost to the other brands.

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Well GM has a new lease on life with no excuses now. They have a lot of good product in the pipeline just waiting to come out.

It will be interesting to see how they do now with a lot of the dead wood gone and obstiacals removed.

I am kind of excited as they have not flubbed much on their most recent new cars. Thwy just need now to earn a look and chance from the people they lost to the other brands.

I wouldn't get too excited just yet, many consumers have it in for GM, and won't buy their product no matter what. I suspect they will enter Chapter 7 within 2 years, maybe sooner ...

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I wouldn't get too excited just yet, many consumers have it in for GM, and won't buy their product no matter what. I suspect they will enter Chapter 7 within 2 years, maybe sooner ...

This gives Tick Tock a much more frightening tone. That prediction puts GM's downfall squarely in the middle of my Grand Prix's payment cycle (I suppose it's a good thing I'm buying it instead of doing another SmartBuy or a lease).

So let me get this straight... General Motors declares bankruptcy. General Motors sells its "good" assets to a new company... also called General Motors. With this transaction, General Motors is able to emerge from bankruptcy. This strikes me as very loopholetastic, like it shouldn't be possible to do.

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fritz needs to lose the prn star stache

He should shave his head and grow a goatee...better than the badly balding comb over whatever that he's wearing now.

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The old GM will consist of soon-to-be shuttered plants, the Pontiac brand and mountains of debt and liabilities.

OK... so then _somebody_ could buy Pontiac? When "Old GM" goes through its engineered value nosedive, the creditors will take _anything_ for the remaining assets... so even a "small" bid like that consortium of Pontiac dealers who wanted to buy Pontiac for $200 million would stand... right?

I also suppose that Pontiac being packaged in "Old GM" means that "New GM" couldn't bring it back at a later date without paying through the nose.

I wonder what else is in "old GM"?

Edited by SAmadei
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Interesting.

PCS: That will depend if people still have short memories or not.....

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I'm curious if the brands planned for sale are technically part of old or new GM.

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I'm curious if the brands planned for sale are technically part of old or new GM.

I would imagine "New GM", if GM wants to keep the money.

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I would imagine "New GM", if GM wants to keep the money.

Yeah, that's kind of the question - does the sale money go to "New GM" to help them recover, or to "Old GM" to help repay debts. From the sounds of things, debtors are getting screwed, so I'd guess they're going to belong to "New GM".

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