Only 30 days have passed since GM entered bankruptcy and the manufacturer will today attempt to persuade Judge Robert Gerber they are ready to start over. According to the deal with the US government, the sale of assets will be made under Section 363 of the bankruptcy code to a "New GM". GM's bad assets will remain in bankruptcy until termination.
Despite the fact the sale faces several objections from interested parties, the sale is expected to go smoother than in Chrysler's case. If it is approved – and signs are it will be -, the sale would mean the second big stone lifted from the auto task force's shoulders.
"It is going even perhaps more smoothly than Chrysler, which is kind of interesting considering how much bigger GM is than Chrysler," Stephen Lubben, bankruptcy professor at Seton Hall Law School in New Jersey was quoted as saying by Autonews.
Yesterday, GM announced it has placed its NUMMI operation on the bad asset list, meaning that Toyota may join the ranks of those opposing the sale. The Japanese are keen on continuing operations at the NUMMI facility, but GM's decision has put a dent in their plans.
"GM believes it is in the best interest of the ‘New GM’ and its stakeholders that we place our ownership interest in NUMMI in 'Old GM’. We have enjoyed a very positive and beneficial partnership with Toyota for the past 25 years, and we remain open to future opportunities of mutual interest,” GM said in a release.
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