GM waits for judge's ruling on sale plan

NEW YORK -- An attorney for General Motors urged a bankruptcy judge Thursday to approve the automaker's sale plan, saying that the only other alternative would be a liquidation of the company's assets that would have "horrific" consequences for everyone.

Attorney Harvey Miller said the government appears committed to cutting off funding to GM if the sale is not approved by July 10. Some parties objecting to the sale argued in court that the Obama administration won't allow GM to fail.

"Essentially the objectors are asking you to play Russian roulette," Miller said, adding that ignoring the deadline would put the futures of GM's employees, retirees, and creditors all at risk.

The judge in the case adjourned the three-day hearing Thursday without indicating when he will rule on the company's plan to sell its good assets to a new company.

U.S. Judge Robert Gerber asked GM's attorneys to submit a proposed order that would be entered if the sale were to be approved. They said they would do so by Friday night or Saturday. Gerber is expected to rule some time after that.

GM's government-backed plan for a quick exit from Chapter 11 protection hinges on the sale of most of its assets to a new entity, allowing the automaker to leave behind many of the costs and liabilities that have made it unprofitable. The Detroit carmaker's June 1 filing for bankruptcy protection was the fourth-largest in U.S. history.

Harry Wilson, a member of President Obama's automotive task force, testified Wednesday that the government has no plans to continue funding GM past July 10 if the sale is not approved by then. Wilson said a quick sale is needed, because the government cannot keep sinking billions in tax dollars into the company for an open-ended period of time with no guarantee of success.

As part of a deal brokered with the auto task force, the U.S. government will get a 60% stake in the new company in exchange for what's expected to eventually total nearly $50 billion in aid.