Federal Bankruptcy Court Judge Robert Gerber approved the sale of most General Motors assets to a new corporation to be owned by the governments of the United States, Canada and the province of Ontario, the United Auto Worker’s Voluntary Employee Benefit Association trust (“VEBA”), and GM bondholders.  Gerber today also denied a “fast track” appeal to the Second Circuit Court of Appeals, by groups of people with product liability and asbestos-related claims.

Gerber stated that he would not stay (hold) the sale while the groups appealed to the Second Circuit because he saw no “substantial possibility” that the groups would prevail, given how that court previously ruled on Chrysler’s similar sale.

The sale is expected to go through on or before Friday.  The US government has pledged to cut off $50 million in funding to GM if the sale isn’t approved by Friday, which would force GM to liquidate.

The new GM will include Buick, Cadillac, Chevrolet, and GMC brands, with the automaker divesting itself of Hummer,  Saab, and Saturn. It will also include some overseas operations, including those in China and Brazil. Pontiac will be closed.

GM has indicated it will back warranties on existing cars, although it has closed 1,000 dealers.  As with the Chrysler bankruptcy, consumers may have to travel farther for sales, service and warranty claims.

Tags: Buick, Cadillac, Chapter 11, Chevrolet, Chevy, Chrysler, Chrysler Bankruptcy, General Motors, General Motors Bankruptcy, GM, GM Bankruptcy, GMC, Hummer, Judge Robert Gerber, Pontiac, products liability, Saab, Saturn, VEBA, warranties

This entry was posted on Wednesday, July 8th, 2009 at 3:19 pm and is filed under Automobile industry, Chrysler Bankrutpcy, GM Bankruptcy, bankruptcy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.