MANHATTAN (CN) – A federal bankruptcy judge on Sunday approved General Motors’ plan to sell its strongest assets to a new, federally backed company, greasing the way for GM’s restructuring. General Motors and the Obama administration hope to close the deal by the end of this week – or GM may lose its federal financing.
Under the proposed deal, GM would sell its Chevrolet and Cadillac brands, and other assets, to a new company owned in great part by the U.S. and Canadian governments and the United Auto Workers union. The Obama administration hopes to take the new General Motors public in 2010.
GM has lost 21,000 workers and closed more than a dozen factories. Forty percent of its dealerships are expected to close.