GM hopes for swift drive to bankruptcy
TEXT OF STORY
BOB MOON: Who wants to buy General Motors? We’re not just talking cars here, but the whole distressed company. Today, GM is pushing ahead with a plan to sell most of its assets to a government-funded holding company, and emerge from Chapter 11 bankruptcy protection almost a month ahead of schedule. Here’s Marketplace’s Sam Eaton.
Sam Eaton: The government-backed plan to create a leaner GM calls for the automaker to sell its best assets to a new version of the company — one with the U.S. government holding a majority stake. The Chevrolet, GM, Cadillac, and GMC brands would survive the transition. Less profitable assets like Hummer and Saturn would be liquidated.
Bondholders and some state officials worried about the economic effects of the deal could still slow the proceedings. But bankruptcy lawyer Douglas Bernstein says that’s unlikely.
DOUGLAS BERNSTEIN: One of the biggest challenges for the objecting parties is you don’t have another buyer.
Leaving any objectors with few alternatives. And with Chrysler’s bankruptcy sale paving the way earlier this month, Bernstein says the precedent has already been set. He says the only question now is whether the government’s $50 billion investment will ever pay off.
I’m Sam Eaton for Marketplace.
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