GM Plans to Sell Assets, Bankruptcy Judge Approves

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.