The judge in the GM bankruptcy case, Robert Gerber, has rejected requests for expedited appeals by groups opposed to the current plan to sell the good assets of the automaker to a newly restructured GM. The Detroit News reports:
A federal bankruptcy judge refused to expedite an appeal of General Motors Corp.’s exit from bankruptcy, making it all but certain that the Detroit automaker will be able to complete a sale of its good assets to a group sponsored by the Treasury Department.
The government said GM could emerge “immediately” after a court-imposed delay expires at noon Thursday.
Late Tuesday, U.S. Bankruptcy Judge Robert Gerber in Manhattan rejected efforts by asbestos lawsuit and personal injury claimants who asked him to send their cases directly to the federal court of appeals in New York. He said he would issue a written opinion later.
The creditors wanted to leapfrog the U.S. District Court so they could get a quick hearing before the 2nd U.S. Circuit Court of Appeals. They have until noon Thursday to convince a higher court to block Gerber’s approval of the asset sale; otherwise, GM and the Treasury Department, which will own 60.8 percent of the new GM, could close on the deal Thursday.
A federal district court could still issue an injunction against the sale pending an appeal, but that likely won’t take place in time to stop the sale on Thursday.