From Bloomberg news:
“General Motors Corp., which is preparing to sell its best assets to a streamlined new entity, will carry with it liabilities of $48.4 billion, a bankruptcy judge said.
The new GM agreed to take on those obligations to benefit creditors, U.S. Bankruptcy Judge Robert Gerber in New York said in a ruling on July 7 that denied a quick appeal to opponents of the sale. The debt will be offset by GM’s most competitive assets, such as Cadillac, Chevrolet, Buick and GMC.
Gerber previously approved the sale of most of GM’s business to a U.S. Treasury-funded buyer and said the company could complete the deal any time after today at noon. The Treasury has set a July 10 deadline for the sale.
Detroit-based GM entered bankruptcy court on June 1 reporting global liabilities of $176.4 billion as of Dec. 31. The old GM will be left with GM’s remaining obligations and unwanted assets, including contaminated factory sites, a parking lot in Flint, Michigan, and a nine-hole golf course in New Jersey.
Gerber ruled on July 7 that asbestos and accident victims couldn’t block the sale or take their opposition directly to an appeals court, bypassing the intermediate district court. He said in a written decision that if GM were forced to liquidate because an appeal blocked the sale, creditors could lose $66.6 billion in value.”
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