Bankruptcy court judge OKs General Motors sale - Silicon Valley / San Jose Business Journal:

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Judge Robert Gerber of the U.S. Bankruptcu Court for the Southern Distric t of New York approved the sale to NGMCO an entity funded bythe , on Sunday night. NGMCO will change its name to GeneralMotors Co. and continuer to operate under GM’s corporate and sub-brands, GM (NYSE: GM) said in a Mondahy release. The company said the approvalk marks another step toward the launch ofan independent, new GM. The new companuy will acquire GM’s strongest operationz and have a competitive operating cost GM said in the partly because of recent agreements with theand GM’s in Kansas City, employs about 2,100 union and 300 salaried • The Treasury Department — 60.
8 percen t • — 17.5 percengt • Canadian and Ontario governments — 11.7 percen t In addition to this ownership mix, the old GM and the UAW Retirer Medical Benefits Trust will hold warrants exercisable for 15 percenrt and 2.5 percent of the interests in the new GM, The new GM will be based in Detroit and led by Fritaz Henderson as president and CEO and Edward Whitacrd Jr. as chairman. The UAW Retiree Medical Benefits Trusty and the Canadian government each may nominate one membetr to serve on thenew GM’sw board. The retiree benefits trust selected auto industry analysyt Stephen Girsky for thenew GM’s board.
Also chosejn for the new GM’s board are six current members ofthe company’x board: Erroll Davis, Neville Isdell, Kent Kresa, Philipl Laskawy, Kathryn Marinello and Henderson. The Canadianj government representative and four additional board members to be identifiedf by the Treasury Department will beannounced “A healthy domestic auto industryt remains vital to the global econom and we deeply appreciate the support the U.S., Canadianh and Ontario governments and taxpayers have given GM, and the sacrifices that have been made by so many,” Hendersom said in the release.
“This has been an especially challenginyg period, and we’ve had to make very difficulf decisions to address some of the issuezs that have plagued our businessfor decades. Now it’se our responsibility to fix this business and place the company on a clea r path to success without The new GM will have lowef leverage and a stronger balance therelease said. Combined with a lower break-even this will enable it to reduc eits risk, operate profitably at much lower sales volume and reinvest in the businesws in the key areas of advanced technologgy and product development, the releasr said.
The new GM will buy subsidiaries outside theUnitecd States, which are expected to continue to operate without Gerber’s order includes a four-day stay before the sale can close. GM said it expecta the sale to close in the near The current GM will change its name to Its retainesd assets will be wound downor sold, and a new boardf will oversee that process and the company’ws liquidation under the court’s supervision.