Bankruptcy judge OKs GM sale plan, but appeals are planned

DETROIT -- Opposition already is brewing after a bankruptcy judge gave General Motors a green light to sell its best assets to a "New GM," leaving unwanted assets to be liquidated, but delayed his ruling to give time for appeals.

An attorney representing product-liability claimants filed a brief Monday to block the decision. Anyone wishing to stop GM from moving ahead with its plans has until noon Thursday to file an appeal, the court said.

U.S. Judge Robert Gerber issued the decision late Sunday to allow GM to sell its good assets to NGMCO, an entity financed by the U.S. Treasury. NGMCO (which stands for New General Motors Co.) will change its name to General Motors Co. and operate with GM's Chevrolet, Buick, Cadillac and GMC brands.

The decision came after a three-day hearing that ended Thursday in which GM argued that it needed to finish the sale by the government's mandated July 10 deadline or it would be forced to shut down and sell off in pieces.

Gerber said such a total liquidation would have a "disastrous result for GM's creditors, its employees, the suppliers who depend on GM for their own existence and the communities in which GM operates."

Steve Rattner, head of the Obama administration's auto task force, said the government is "confident that (Gerber's) decision will stand and the sale of GM's assets to New GM will proceed expeditiously."

The new company will have fewer brands, fewer plants and far less debt than GM had at the end of May.

"This has been an especially challenging period, and we've had to make very difficult decisions to address some of the issues that have plagued our business for decades," said GM CEO Fritz Henderson. "Now it's our responsibility to fix this business and place the company on a clear path to success without delay."

The judge's decision likely clears the way for the deal to go through, says Scott Silverman, an attorney at McCarter & English who represented dealers cut off by GM and Chrysler. Chrysler's deal with Fiat was also opposed, and appeals went all the way to the Supreme Court before it was approved.