Judge Approves GM's 363 Sale
GM's bankruptcy seems to be going as quickly as Chrysler's, so far.
www.gminsidenews.com
June 2, 2009
By: Nsap
Earlier this afternoon GMI was informed that the bankruptcy judge preceding over the bankruptcy of General Motors has already made another fairly substantial ruling in the matter. As many media outlets, including GMI, have reported, GM is seeking a 363 sale in Chapter 11 bankruptcy. This process will allow the company to seperate it's toxic assets to be liquidated in court while the good assets can emerge from bankruptcy protection and start a new life.
According to sources, the judge approved of GM's purposed 363 sale this afternoon. What this means is that the bankruptcy proceedings can continue on according to the pre-packaged plan that was put in place by the Auto Task Force and GM management.
Today's approval of the 363 sale has also brought out the last date in which someone can bid on the new GM, which will be June 22. In order to upset the government's bid on the new company, a firm would have to bid over $35 Billion for new GM. In other words, it is unlikely that anyone will bid over the government. We're also told that final approval of the sale is expected as soon as June 30th. If that is the case, it appears that GM's bankruptcy will be as speedy as Chrysler's was.
In addition, GMI was told that as of late last week 52% of GM's bondholders had agreed to the latest deal. This is important in that those that have agreed to the new deal will not be voicing any opposition to the bankruptcy plan.