GM Bankruptcy Sale Appeals are filed

Judge Gerber placed a four day stay on the GM Asset Sale order until Thursday to provide objectors time for an appeal. There was some wisdom in this decision since there were hundreds of objectors. It was a given that appeals would be filed immediately. The initial appeal was filed first thing Monday morning by "Individual Accident Litigants".

See the entire document:

http://gmcourtdocs.gardencitygroup.com/pdflib/2970_50026.pdf

I'll try to update as the appeals begin to be filed.

GM asset sale approved late Sunday

"Barring a successful last-ditch appeal by creditors to block the sale, the U.S. Treasury Department -- through its Vehicle Acquisition Holdings LLC -- would be able to close on the deal after noon on Thursday. GM and the Treasury Department had asked Gerber to make his ruling effective immediately, allowing the sale of GM's assets to close as early as today, but under Gerber's order, GM and the Treasury Department aren't authorized to close the deal until after noon on Thursday, giving objectors a chance to file an appeal and win a court stay. But Gerber warned objectors that the government might not wait that long. "

"It is unclear whether creditors who objected to the sale will appeal, as happened in Chrysler's case, where the objectors' appeal went all the way to the U.S. Supreme Court, which declined to hear the case."

See the entire article here:
http://www.detroitnews.com/article/20090706/AUTO01/907060362/GM-asset-sale-approved-late-Sunday

GM 363 Sale Approved 7/5/09

Sadly, the sale for GM best assets to a new Government controlled entity was approved as a means of circumventing the Chapter 11 bankruptcy and negotiating with the creditors.

See the Court decision here:

http://gmcourtdocs.gardencitygroup.com/pdflib/2968_50026.pdf

See Wall Street Journal article:

http://online.wsj.com/article/SB124685350559099233.html

I assume the appeals by various parties will be filed within the next few days.

GM Recovery Plan Rests With Judge

"We support the creation of a new GM. We think it's a fine idea," Michael Richman, a lawyer for the group, said, acknowledging that without government loans, GM would collapse. "That doesn't earn the government an exemption from the law."

Mr. Richman said U.S. control over GM made the company's bankruptcy "a historic first attempt at a Chapter 11 nationalization."

See the entire article:
http://online.wsj.com/article/SB124654496390486149.html

GM's bondholders: Let's 'negotiate fairly'

The representatives explained to the court that they shouldn't be left behind in GM's bankruptcy process, arguing that such a move is not legal.

Michael Richman, an attorney from the firm Patton Boggs representing a group of dissident bondholders addressed the judge about "the absence of real choice in the dominance of the government," referring to the U.S. Treasury's role in pushing the bankruptcy process forward.

He said that the Treasury, in imposing it's July 10 "drop dead deadline" was using a "my way or the highway" attitude in refusing to consider alternate means of restructuring.

http://money.cnn.com/2009/07/02/news/companies/GM_bankruptcy/index.htm?postversion=2009070211