From the St. Louis Business Journal:
A New York bankruptcy judge on Sunday approved the sale of General Motors‘ primary assets to a new company led by the U.S. government, the New York Times reported Monday.
Judge Robert Gerber of the Federal Bankruptcy Court in Manhattan overrode the objections of several creditors, agreeing with GM that the sale was needed to keep the automaker in business, according to the publication. It is possible, however, that some creditors will pursue an appeal.
The Detroit-based company filed for Chapter 11 bankruptcy June 1.
The decision sets the stage for the new GM to emerge from bankruptcy Thursday, the Times said. Besides the U.S. government, the Canadian government and health-care trust for the United Auto Workers will have stakes in the new company.
The new company, which will operate under the General Motors name, will focus on manufacturing fuel-efficient cars. The government hopes to take GM public in 2010. In the meantime, the old GM will remain in bankruptcy as trustees wind down the business.