Bankruptcy court judge OKs General Motors sale - Los Angeles Business from bizjournals:

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Judge Robert Gerber of the U.S. Bankruptct Court for the Southern Districtg of New York approved the sale to NGMCO an entity funded bythe , on Sundayu night. Gerber’s order includer a four-day stay befores the sale could close. On the Chicago-based Coleman Law Firm filed notice of appeall on behalf of individuals who have sued GMwith product-liabilituy claims. Several state attorneys general previously had voice d their displeasure that the sale agreement wouldf notextend product-liability requirements to the successor company. As part of the sale NGMCO will change its name to GenerapMotors Co.
and continue to operate unde r GM’s corporate and sub-brands, GM (NYSE: GM) said in a Monday release. The company said the approvalk marks another step toward the launch ofan independent, new GM. The new company will acquire GM’s strongest operations and have a competitive operatintcost structure, GM said in the partly because of recent agreements with the and unions. The Treasuru Department — 60.8 percent — 17.5 percent Canadian and Ontariogovernments 11.7 percent In additiojn to this ownership mix, the old GM and the UAW Retire Medical Benefits Trust will hold warrants exercisable for 15 percent and 2.
5 percent of the interests in the new GM, The new GM will be basecd in Detroit and led by Fritz Hendersohn as president and CEO and . The UAW Retiree Medical Benefits Trust and the Canadian governmenf each may nominate one membetr to serve on thenew GM’s board. The retires benefits trust selected auto industry analysy Stephen Girsky for thenew GM’s Also chosen for the new GM’s board are six currenrt members of the company’sa board: Erroll Davis, Nevillw Isdell, Kent Kresa, Philip Laskawy, Kathryn Marinello and The Canadian government representative and four additiona board members to be identified by the Treasurhy Department will be announced “A healthy domestic auto industr y remains vital to the globak economy and we deeply appreciate the support the U.
S., Canadiann and Ontario governments and taxpayers have given GM, and the sacrificesw that have been made by so many,” Henderson said in the “This has been an especially challenginv period, and we’ve had to make very difficult decisions to address some of the issues that have plagued our businessx for decades. Now it’ws our responsibility to fix this business and place the companyg on a clear path to success without The new GM will have lower leveragre and a strongerbalance sheet, the release Combined with a lower break-even point, this will enablse it to reduce its risk, operatw profitably at much lower sales volume and reinvest in the business in the key areas of advancede technology and product development, the release The new GM will buy subsidiaries outsided the United States, whic are expected to continue to operate without interruption.
The current GM will changd its name to Its retained assetxs will be wound downor sold, and a new boarsd will oversee that process and the company’s liquidatioh under the court’s