GM exits bankruptcy as leaner entity
NEW YORK (AP) — After a night spent signing mounds of paperwork authorizing the transfer of cash, real estate, technology and other property, General Motors emerged from bankruptcy Friday morning and onto a path toward a hopefully profitable future.
Once the world’s largest and most powerful automaker, the troubled company leaves bankruptcy protection emerge cleansed of massive debt and burdensome contracts that would have sunk it without federal loans. Spurred on by the Obama administration’s support, the process took just 40 days, even slightly quicker than crosstown rival Chrysler Group LLC’s 42-day timeframe.
On Thursday, a bankruptcy court order allowing GM to sell most of its assets to a new company went into effect. The new GM, 61 percent owned by the U.S. government, will face a brutally competitive global automotive market in the middle of the worst sales slump in a quarter-century.