US: New GM ready to emerge Thursday
General Motors and the US treasury are ready for the 'new GM' to emerge from bankruptcy Thursday afternoon, the government's lawyer has told the court.
"The parties are prepared to close immediately upon the expiration of the stay on Thursday afternoon," Matthew Schwartz, an assistant US attorney, said in court records cited by the Detroit Free Press. "Indeed, the parties have been prepared to close since earlier this week."
The paper said the filing was made in response to motions from two groups opposing the sale of GM's assets to create a new GM. They were asking a judge to have their appeals bypass the US District Court and go directly to the US Court of Appeals.
If that did not happen, one of the groups - the Ad Hoc Committee of Asbestos Personal Injury Claimants - had asked the court to temporarily halt the deal, the report added.
Bankruptcy Judge Robert Gerber approved the sales deal late on Sunday but, under his sales order, the deal would not close until Thursday in order to give objectors time to appeal.
But, in a Tuesday evening hearing, Gerber rejected the objectors' requests to go straight to the appeal court, saying he would later issue a decision that laid out his thinking. The additional request for a temporary halt of the deal also was rejected.
"The need for new GM to be able to immediately commence operations free of the entanglement of bankruptcy cannot be overstated. Any further delay in this process ... will in fact result in irreparable revenue decline and permanent loss of GM market share," Harvey Miller, GM's bankruptcy lawyer, said in court records on Tuesday cited by the Free Press.