From the ArcaMax Publishing, Business News Newsletter:
http://www.arcamax.com/news/businessnews/s-575093-175995
NEW YORK (UPI) -- An attorney representing General Motors Corp.
bondholders told U.S. Bankruptcy Court Judge Robert Gerber the
government was bluffing with a July 10 deadline.
Representing the U.S. Treasury, Harry Wilson had told the judge that
GM needed to complete a sale of its good assets by July 10 or the
government would back away from its $30 billion commitment to purchase
61 percent of the company.
But attorney Michael Richman said the government had made a
"conscious, strategic decision," to avoid a traditional reorganization
of the company, which was an "awesome gamble," The Washington Post
reported Friday.
After bailing out GM earlier this year with billions of dollars, the
government's claim that it would walk away from the deal now was "not
credible," Richman said.
GM's attorney Harvey Miller said the critical issue was a quick sale
of GM to protect its customer base.
With a delayed bankruptcy proceeding, "essentially, the objectors are
asking you to play Russian roulette," Miller said.
The judge closed the hearing on the sale of GM's assets but did not
indicate when he would make a decision on the matter, the newspaper
said.