Dissenting bondholders argue against GM asset sale
NEW YORK, July 2 (Reuters) - A group of dissenting bondholders told a U.S. bankruptcy judge on Thursday that General Motors Corp's (GMGMQ.PK) proposed asset sale to the government should be blocked because it is not "a genuine sale."
Calling GM's sale the first attempt at a "Chapter 11 nationalization," Michael Richman, a Patton Boggs bankruptcy attorney representing the group of dissenting GM bondholders, said the U.S. government had been "overbearing" in its rescue of the automaker and was circumventing the law.
GM was in U.S. bankruptcy court in Manhattan on Thursday to seek approval from Judge Robert Gerber for a proposed sale of its best assets to a "New GM" funded by the U.S. government.
Over the course of the three-day hearing, the company's lawyers, CEO Fritz Henderson, and a senior member of the Obama administration's autos task force have argued that the sale is GM's only option for survival.
If the deal is approved, New GM plans to be a company that would have the best parts of the old company, a less-expensive workforce and much less debt.
http://www.reuters.com/article/gover...24529220090702