Late Sunday night, a U.S. district judge approved selling GM's assets to a new company backed by the government.
From Tomoeh Murakami Tse, The Washington Post:
General Motors won permission late Sunday night from a federal bankruptcy judge to sell its assets to a new government-backed company, setting the stage for the largest U.S. carmaker to complete a historic restructuring plan that is at the heart of the Obama administration's efforts to overhaul the ailing auto industry.
U.S. District Judge Robert Gerber issued his decision over the objections of more than 850 parties and after three days of hearings that ended just before the long holiday weekend. In a 95-page opinion, Gerber sided with lawyers for the government and GM, who argued that the government-orchestrated restructuring plan was the only option available to save the automaker, once the crown jewel of American manufacturing.
"The only alternative to an immediate sale is liquidation -- a disastrous result for GM's creditors, its employees, the suppliers who depend on GM for their own existence, and the communities in which GM operates," he wrote. "In the event of a liquidation, creditors now trying to increase their incremental recoveries would get nothing."
