NEW YORK --- A bankruptcy judge ruled Monday that General Motors Corp. can have immediate access to $15 billion in government financing and set a hearing on the proposed sale of the bulk of the automaker's assets to take place in just 30 days.
Noting that time is of the essence, U.S. Judge Robert Gerber gave interim approval to the Detroit-based automaker's use of $33.3 billion in financing, with the $15 billion available for use over the next three weeks.
Judge Gerber will rule on final approval of the total amount of financing June 25.
As it reorganizes, GM will rely on billions of additional financial assistance from the Treasury Department and Canada. That's on top of about $20 billion in taxpayer money GM already has received in the form of low-interest loans.
The judge also set GM's sale hearing for June 30, putting the automaker on a path similar to that of rival Chrysler LLC, which held its sale hearing about 30 days after filing for Chapter 11.
Objections in GM's case are due June 19, with any competing bids required to be submitted by June 22.
Harvey Miller, an attorney for GM, stressed the magnitude of the case and the importance of moving GM through court oversight as fast as possible. He noted that the automaker only has about $2 billion in cash left.
"If there's going to be a recovery of value, it's absolutely crucial that a sale take place as soon as possible," he said in his opening statement.
Judge Gerber set a strict and speedy tone early on in the hearing. During a motion to require the approval of certain expenses and a restriction barring first-class flights, an attorney participating over the phone jokingly asked, "What about private jets?"
The comment was in reference to the company's earlier use of a corporate jet to fly former Chief Executive Rick Wagoner to Washington to ask Congress for aid, which resulted in a firestorm of negative publicity.
"If anybody cracks any jokes I'm going to disconnect the phones," Judge Gerber snapped. "This is serious to a lot of people's lives and I'd think that people here would understand that."
Also at Monday's hearing, he approved motions allowing the company to pay certain pre-bankruptcy wages, along with supplier and shipping costs.
No cuts expected for racing program
DETROIT --- General Motors Corp. expects to continue its longtime involvement in auto racing as the carmaker retools after bankruptcy.
A company spokesman said Monday he didn't expect budget cuts to GM Racing's program, which already had been scaled back earlier this year.
GM supports teams in NASCAR, NHRA, ALMS and short-track racing. It provides marketing support and vehicles to tracks around the country, including Michigan International Speedway, where the LifeLock 400 NASCAR Sprint Cup race will be held June 14.
GM also provides cash and technical aid to race teams including Hendrick Motorsports in Charlotte, N.C., which fields Jeff Gordon, Jimmie Johnson, Mark Martin, Dale Earnhardt Jr. and Brad Keselowski.
GM also said its sponsorship of the 2010 Winter Olympics won't be affected.
icon.
