NEW YORK (WKOW) -- A Federal Judge approved General Motors bankruptcy plan.
This means GM can go ahead and sell the bulk of its assets to the "New GM", and shed much of its debt and liabilities. Any assets not transferred to the new company will be liquidated.
Saying "the only alternative to an immediate sale is liquidation," U.S. Judge Robert Gerber ruled late last night that the sale is needed to avoid "immediate and irreparable harm" to GM.
The Treasury Department has vowed to cut off funding to GM if the sale doesn't go through by July 10.
GM announced Monday that Fritz Henderson will remain the CEO.
Opponents of the bankruptcy plan now have four days to appeal the decision, and a Chicago law firm already plans to. The firm represents people involved in accidents who claim a defective GM vehicle was to blame. They say the bankruptcy plan frees the new GM from liability for past claims, and that's not fair.