Bankruptcy Judge Approves GM’s Sale Of Saab Automobile

Posted on 06. Jul, 2009 by Ryan in 2000-2009

The Associated Press along with the Detroit Free Press and others has just learned that a federal bankruptcy judge in New York has approved GM’s plan to sell its assets, most importantly, Saab Automobile.

This is a good piece of news because it allows Saab Automobile to be officially sold to Koenigsegg. However, the big question is now, what will be considered “Old GM”, and what will be considered the “new GM”?

NEW YORK (AP) – A federal bankruptcy judge says General Motors can sell the bulk of its assets to a new company, potentially clearing the way for the automaker to quickly emerge from bankruptcy.

Saying “the only alternative to an immediate sale is liquidation,” Judge Robert Gerber ruled late last night in New York that the sale is needed to avoid “immediate and irreparable harm” to GM.

Assets that GM does not sell to the new company will become part of a separate “old GM” and will be sold to the highest bidder under court supervision.

The old GM will include properties such as a stamping plant in Indianapolis that is slated to close. Other assets to be filed under the old GM include brands like Hummer, Saturn and Saab, for which GM has lined up buyers.

Tags: Associated Press, Bankruptcy Judge, Detroit Free Press, federal bankruptcy judge, General Motors, Hummer, Indianapolis, New York, saab, Saturn