Judge approves sale of GM assets

Judge Gerber a U.S. Federal judge has approved the sale of GM assets to the new GM company owned by the US taxpayers. This is good and bad news. Its bad news for the bond holders and other companies that where owed money by the Bankrupt car manufacturer. While this ruling may allow GM to come out of bankruptcy sooner possibly saving the jobs of union workers at the company, it will likely lead to layoffs at the companies it owes money to.

The judge said in the 87-page ruling that short of bankruptcy, the alternative would be liquidation, "a disastrous result for GM’s creditors, its employees, the suppliers who depend on GM for their own existence, and the communities in which GM operates. In the event of liquidation, creditors now trying to increase their incremental recoveries would get nothing," the Journal reported.

With the wheels in motion, the auto maker could potentially exit bankruptcy proceedings within two months, the report said. So we are sacrificing some people’s jobs for those of others. Of course this may have something to do with the fact that the UAW backed the current administration and it seems odd that they are really the only ones who are going to benefit by the billions thrown at the bankrupt car companies. In the GM bankruptcy as well as Chrysler the UAW has came out better than any other stakeholder.

Tagged with: aj tak • Auto Maker • Bankruptcy Proceedings • Bond Holders • Bussiness • bussiness standard • Car Companies • Car Manufacturer • cbs marketwatch • cnbc • Cnn • cnn premarket • Creditors • Current Administration • Federal Judge • Gerber • GM bankruptcy • Layoffs • marketwatch • Stakeholder • Technorati • Uaw • unemployment • Wheels In Motion

Filed under: Current News • Economy • Unemployment News

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