GM ready to exit from bankruptcy

GM's emergence from bankruptcy may be unusually quick

General Motors (GM) is expected to announce a speedy exit from bankruptcy protection later.

The announcement is anticipated after a bankruptcy court order allowing it to sell its most profitable assets to a "new GM" took effect.

GM has scheduled a news conference in Detroit later on Friday.

The new, streamlined GM, will own the company's core assets such as Cadillac and Buick, and will be 61% owned by the US government.

GM is in the processing of selling off its other brands such as Hummer, Saab and its GM Europe arm.

NEW GM'S BRANDS Chevrolet GMC Cadillac Buick

A US judge rejected a last-minute request to delay the sale of the profitable parts of the company.

Judge Lewis Kaplan rejected a request for a delay from a group who are pursuing a product liability claim relating to the Chevy Malibu on the grounds that delaying the sale would probably lead to the liquidation of GM.

Help from Chrysler

The emergence from bankruptcy would be unusually quick for a company the size of GM.

GM BRANDS TO GO Pontiac* Saturn# Saab# Hummer# Opel# Vauxhall# *= to be discontinued/# = to be sold From biggest carmaker to biggest bankruptcy

It has been helped by the legal precedents set in cases relating to Chrysler's bankruptcy protection, when opponents of the deal tried and failed to block it.

GM filed for bankruptcy protection on 1 June, saying it would be forced to liquidate if the plan was not approved.

In effect, a new, smaller GM is being created with a reduced workforce, smaller dealer network and less debt.

It will operate the best parts of the old company, with only its Chevrolet, Cadillac, Buick and GMC brands remaining. Its European operation, Opel, is being sold off.

The firm is getting $60bn (£37.3bn) in financing from the US Treasury, which gives the US government a 61% share in the "new" GM, while the United Auto Workers union will have 17.5%.

Canada's government will have a 12% share and GM bondholders will own about 10% in the new company.