07.06.09

Bankruptcy Court approves GM restructuring

Late in the evening on Sunday, July 5, the Bankruptcy Court issued its ruling approving the proposed restructuring, and the UAW Retiree Health Settlement Agreement. The previous week, the Court had held several days of hearings.

Under the order issued on Sunday night, the parties are free to finalize the transactions at any time after noon on Thursday, July 9. Any party wishing to file an appeal from the Bankruptcy Court’s order will therefore likely do so immediately, and will likely seek to extend this "stay period" beyond Thursday. Unless the "stay period" is extended in response to a request by an objecting party, the parties will be free to implement the additional government financing, the UAW Retiree Settlement Agreement, and all of the other components of the restructuring on Thursday afternoon.