The Auto Board

[MWM]

GM emerges from bankruptcy

GM's path to leave Chapter 11 cleared

AP – The General Motors headquarters is seen in Detroit, Thursday, July 9, 2009. A person briefed on the matter … By TOM KRISHER, AP Auto Writer Tom Krisher, Ap Auto Writer – 8 mins ago
DETROIT – The new General Motors arose on Friday as lawyers finished an all-night paperwork session transferring the automaker's good assets to a brand-new company controlled by the U.S. government.

The massive transfer of factories, money and intellectual property was completed about 6:30 a.m., according to a person briefed on the situation, clearing the way for a smaller and faster company better equipped to compete in the brutally tough global automotive market.

The person, who asked to remain anonymous because the deal wasn't announced officially, said the signing meant the new GM had emerged from bankruptcy.

One bankruptcy expert called GM's 40-day case the fastest ever for a company of its size.

GM's warp-speed emergence from bankruptcy is expected to be announced by CEO Fritz Henderson and new Chairman Edward Whitacre Jr. at a 9 a.m. news conference at the company's Detroit headquarters.

Henderson is expected to announce details of the plan to make new GM profitable again. The troubled automaker has lost more than $80 billion in the past four years.

Once the world's largest and most powerful automaker, new GM is now cleansed of massive debt and burdensome contracts that would have sunk it without federal loans. Spurred on by the Obama administration's support, the bankruptcy process was two day's faster than crosstown rival Chrysler Group LLC's 42-day timeframe.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

DETROIT (AP) — A person briefed on the matter says General Motors Corp. has emerged from bankruptcy protection after signing papers to transfer the bulk of its assets to a new, leaner company majority-owned by the U.S. government.

The person, who asked to remain anonymous because the action hasn't been officially announced, said Friday the action came at 6:30 a.m. EDT Friday.

One bankruptcy expert called GM's 40-day case the fastest ever for a company of its size.

The new GM is a smaller company that is less burdened by the staggering debt that nearly sent it to liquidation.