On Monday, the U.S. Government filed with the U.S. Bankruptcy Court for the Southern District of New York a statement in support of General Motors' motion to approve the sale of GM assets pursuant to the master sale and purchase agreement with Vehicle Acquisition Holdings (a U.S. Treasury-sponsored purchaser). The statement asserts:  "the Government fully supports the 363 Transaction, which, if consummated, will facilitate a rebirth of the American automobile industry. Treasury's role as a lender to the Debtors pre- and post-petition and as a sponsor of the Purchaser is certainly extraordinary, but, as the Debtors' consolidated reply to all objections to the Sale Motion…makes clear, the Sale Motion seeks relief that, far from being extraordinary, is squarely permitted by well-settled precedent." The statement further maintains that each of the objections to the proposed sale should be overruled by the Court.

     GM filed the motion pursuant to 11 U.S.C. § 363.  The Court is scheduled to hear GM's motion, along with several other motions, on Tuesday June 30. A complete copy of the U.S. Government's statement, GM's motion, and other documents filed in the GM Chapter 11 case can be obtained through the Southern District of New York Bankruptcy Court's website.

-Drew Broaddus