GM Bankruptcy moves forward. Here are some details from the general.
GM Statement Re: U.S. Bankruptcy Court Approval of GM DIP Financing and Other Matters
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<span class="style3"><span class="style4"><span class="style6">New York – General Motors Corporation today received U.S. Bankruptcy Court approval of $33.3 billion in debtor in possession (DIP) financing from the U.S. Treasury and the Canadian and Ontario governments. </span></span></span>
On June 1 the court authorized GM to use up to $15 billion of the facility on an interim basis and today entered an order approving the full facility on a final basis. This credit facility will be used, among other things, for the company's normal liquidity requirements, including employee wages, healthcare benefits, supplier payments, and other general operating expenses.
Judge Robert E. Gerber of the U.S. Bankruptcy Court for the Southern District of New York also approved the following GM motions on a final basis:
- Authority to pay prepetition claims of essential suppliers and vendors
- Authority to pay prepetition obligations to foreign creditors
- Authority to use cash collateral
- Authority to continue using its existing cash management system
- Approval of stock trading restrictions (Motion on Net Operating Loss Carryforwards)
Judge Gerber also approved the retention of certain legal and other professionals and approved procedures to provide adequate assurance to utility companies.
The hearing to approve GM’s motion for the Section 363 asset sale is scheduled to begin June 30, 2009. Details of the court schedule and access to court documents is available at www.gmcourtdocs.com.