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Wed July 1, 2009
Another day in court for GM bankruptcy proposal
NEW YORK – Attorneys, bondholders, consumer groups and others will be back in a Manhattan courthouse this morning for more testimony about General Motors' bankruptcy plan.
If it goes anything like yesterday, it could be another frustrating session for U.S. Judge Robert Gerber, who admonished lawyers for a lack of focus in their questioning.
GM is trying to avoid a lengthy sale hearing that could delay its emergence from Chapter 11. CEO Fritz Henderson warned yesterday on the stand that the government could walk away from the deal if the sale doesn't close by July 10.
One lawyer for a group of bondholders argued that GM was going for a sale instead of a restructuring because it would make it harder for creditors to negotiate with the company.