posted by GM Fan on Jul 15
Last weekend, a bankruptcy court judge gives a nod for the sale of assets for the most valuable assets of GM to end bankruptcy protection from the ownership of the government. This means that the car manufacturer is a step closer from getting out of bankruptcy.
Robert Gerber, the judge who ruled on the case, described it as a necessary step to prevent the death of a critically ill patient. The court has given a stay of four days which permits a close as early as July 10.
The sale will transfer in essence all of the properties of General Motors to the NGMCO Inc. which was established by the Department of Treasury. NGMCO will be known as General Motors Company once the sale is completed and will operate through the corporate GM and all of its sub brands.
Fritz Henderson will be the CEO of the newly established GM. The cost of operations will also be competitive in terms of its structure with standing agreements with the UAW and CAW, organizations of Auto Workers in United States and Canada, respectively.
The new status of GM will allow it to operate and gain profits at lower volume of productions. GM attributes this foresight to the cleaner debt sheet and better balance sheet post bankruptcy.
Daewoo, Holder, and other subsidiaries of GM outside the of U.S. will be acquired by the new GM but continue to operate without any interruption.
The Department of Treasury will be owning about 60.8% of the new company while 17.5% goes to UAW, and 11.7% to the Ontario government and CAW. Bond holders of the old GM will be getting 10% of the stake.