Way Cleared For GM To Emerge From Bankruptcy A federal bankruptcy judge says General Motors may sell the bulk of its assets to a new company. The decision is an important step in the Obama administration's effort to quickly restructure the automaker.

Way Cleared For GM To Emerge From Bankruptcy

Way Cleared For GM To Emerge From Bankruptcy

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A federal bankruptcy judge says General Motors may sell the bulk of its assets to a new company. The decision is an important step in the Obama administration's effort to quickly restructure the automaker.

RENEE MONTAGNE, host:

NPR's business news starts with the new General Motors.

(Soundbite of music)

MONTAGNE: A bankruptcy court judge last night approved GM's plan to turn itself into a leaner company and, hopefully, a profitable one. The decision is an important step in the Obama administration's effort to quickly restructure the automaker. The ruling, if there's no appeal, allows GM to transfer its most profitable assets to a new entity. Money losing assets, like the Hummer brand, will be shifted elsewhere.

The decision rankles bondholders and some others who don't like the limits on their ability to sue the new GM. The judge said the only alternative was liquidation. The new General Motors will be about 60 percent owned by the U.S. government.

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