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WORLD> America
Bankruptcy judge OKs GM sale plan
(Agencies)
Updated: 2009-07-06 13:25

NEW YORK: A bankruptcy judge says General Motors can sell the bulk of its assets to a new company, clearing the way for the automaker to quickly emerge from bankruptcy.

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US Judge Robert Gerber ruled late Sunday that the sale is needed to avoid "immediate and irreparable harm" to GM.

GM's government-backed plan for a quick exit from Chapter 11 bankruptcy protection hinges on the sale, which will allow the automaker to leave behind many of its costs and liabilities.

The Treasury Department has vowed to cut off funding to GM if the sale doesn't go through by July 10.

Hundreds of parties filed objections asking Gerber to reject the sale.

The Detroit car maker's Chapter 11 filing on June 1 was the fourth-largest in US history.

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