New GM could emerge from Chapter 11 this Thursday

Article by Christian A., on August 27, 2010

The "New GM" will be emerging from Chapter 11 this Thursday, according to U.S assistant attorney Matthew Schwartz, who is closely involved with the General Motors bankruptcy hearings. In court records, he disclosed that the "parties are prepared to close immediately upon the expiration of the stay on Thursday afternoon."

He added that the parties have actually been prepared to close since earlier this week.  Last Sunday, Bankruptcy Judge Robert Gerber approved the sale of GM's assets to a new entity majority owned by the US government; however, he also ordered a stay on the sale until Thursday to allow groups of dissenters to file for appeals.

Judge Gerber yesterday denied a motion by a group claiming to have been injured by GM vehicles to skip the US District Court appeals process and appeal directly to the US Court of Appeals. He also rejected a request from a group of asbestos claimants to stay the sale longer.

No explanation was given but Judge Gerber said that he will be issuing a response by the end of the day on Tuesday.

As part of the deal approved by Judge Gerber, GM dealers will be given access to state courts for potential disputes with the new GM.

GM arrived at a deal that allows disputes such as product liability claims, warranties, and compliance with lemon, privacy, environmental and tax laws to be brought to court in 45 states. Termination disputes were not included in the deal.

Topics: gm, bankruptcy

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