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Deadline passes with no new bids for GM

Posted Tuesday, Jun 23, 2009, 1:29 pm in Employee News

Automotive News reports no other company has submitted a competing offer to the U.S. Treasury Department’s bid to buy the healthy assets of General Motors from Chapter 11 protection.

GM spokeswoman Julie Gibson confirmed that the deadline for submitting bids had passed Friday, and no other bids were expected.

The federal government has pledged as much as $30 billion in Chapter 11 financing to GM to allow the automaker to operate in bankruptcy and successfully exit. The Treasury has already given GM $19.4 billion since late December.

According to the story, a June 30 hearing is scheduled for the government to buy the healthy assets of GM under a Section 363 sale. If the sale is approved, GM will emerge from Chapter 11 owned 60 percent by the Treasury. An additional 12.5 percent will be owned by Canadian government entities, 17.5 percent by a UAW-administered retiree health care trust and 10 percent by current bondholders. (Automotive News)
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