7 Jul 2009

Judge approves sale of GM assets

10:10 am on 7 July 2009

A United States judge has approved General Motors bankruptcy sale in a move that will allow the company's most profitable assets to exit bankruptcy protection under government ownership.

Judge Robert Gerber of the US bankruptcy court in Manhattan said the sale would "prevent the death of the patient on the operating table."

GM filed for bankruptcy protection on 1 June, saying it would be forced to liquidate if the plan was not approved, and the US government said it could walk away from funding the automaker if a deal was not approved by 10 July.

The new streamlined General Motors will be 60% owned by the US government.

Under the deal, 'New GM' will operate the best parts of the old company, including its Chevrolet and Cadillac brands, with a less expensive workforce, smaller dealer network, and much less debt. The rest of the company will be liquidated.