General Motors has until July 10 to sell top assets to a new company backed by the government, or it will lose its bankruptcy funds.
From Timothy Williams, The New York Times:
General Motors must win approval to sell its best assets to a new government-financed company by July 10 or risk losing its bankruptcy financing, a Treasury Department official testified on Wednesday.
Harry J. Wilson, a member of the Obama administration’s auto task force, said in United States Bankruptcy Court in New York that the government’s loan to G.M. expired July 10. If the carmaker — now in its second day of hearings to approve the sale — fails to complete the transaction by then, the administration does not intend to extend the loan by even one day, he said.
“We have no intention to further fund this company if the sale order is not entered by July 10,” Mr. Wilson said. “It’s better to cut one’s losses.”
