NEW YORK — The judge in the General Motors Corp. bankruptcy case adjourned a three-day hearing without indicating when he will rule on the company’s plan to sell its good assets to a new company.
U.S. Judge Robert Gerber asked GM’s attorneys to submit a proposed order that would be entered if the sale were to be approved. They said they would do so by tonight or Saturday. Gerber is expected to rule some time after that.
A lawyer for GM warned the court that the only alternative to GM’s plan would be a liquidation of the company’s assets that would have “horrific” consequences for everyone involved.
Attorney Harvey Miller said the government is committed to cutting off funding to GM of the sale is not approved by July 10.
That followed testimony Wednesday from a member of President Barack Obama’s automotive task force who indicated the government has no plans to continue funding GM past next Friday if the sale is not approved by then.
GM’s government-backed plan for a quick exit from Chapter 11 protection hinges on the sale of most of its assets to a new entity, allowing the automaker to leave behind the costs and liabilities that have made it unprofitable.
