Federal Judge Approves GM Bankruptcy But Appeals Expected
The Wall Street Journalreports that a federal judge has approved the sale of General Motors Corp.'s assets to a new government-run entity.
Judge Robert E. Gerber of the U.S. Bankruptcy Court for the Southern District of New York said GM's only alternative would have been liquidation.
The judge said the only alternative to GM's plans would be liquidation, "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. In the event of a liquidation, creditors now trying to increase their incremental recoveries would get nothing."
The ruling paves the way for GM's government-brokered restructuring, in which the auto maker will move its "good" assets -- including automotive brands Chevrolet, Cadillac, Buick and GMC -- to a new company owned by the U.S. Treasury. The sale approval clears the way for GM to potentially exit bankruptcy in less than two months.
A Reuters article says appeals are expected from some of "some of GM's bondholders, unions, consumer groups and individuals with lawsuits against the company."
The Wall Street Journal 
