NEW YORK — Judge Robert Gerber of the U.S. Bankruptcy Court for the Southern District of New York has approved the sale of substantially all of General Motors Corp.’s assets to NGMCO Inc., an entity funded by the U.S. Department of the Treasury. In connection with the closing of the sale transaction, NGMCO Inc. will change its name to General Motors Co. and continue to operate under GM’s historic corporate and sub-brands. The approval marks another step toward the launch of an independent, new GM. 
The new company will acquire GM’s strongest operations and will have a competitive operating cost structure, partly as a result of recent agreements with the United Auto Workers (UAW) and Canadian Auto Workers (CAW).
The new GM will be headquartered in Detroit and will be led by Fritz Henderson as president and chief executive officer and Edward Whitacre, Jr. as chairman of the board of directors.
"A healthy domestic auto industry remains vital to the global economy and we deeply appreciate the support the U.S., Canadian and Ontario governments and taxpayers have given GM, and the sacrifices that have been made by so many,” said Henderson. “This has been an especially challenging period, and we’ve had to make very difficult decisions to address some of the issues that have plagued our business for decades. Now it’s our responsibility to fix this business and place the company on a clear path to success without delay."
The new GM’s common stock will be owned by the U.S. Department of the Treasury: 60.8 percent; UAW Retiree Medical Benefits Trust: 17.5 percent; Canada and Ontario governments: 11.7 percent; and the old GM: 10 percent. Additionally, the old GM and the UAW Retiree Medical Benefits Trust will hold warrants that are exercisable for 15 percent and 2.5 percent of the interests in the new GM, respectively.
The UAW Retiree Medical Benefits Trust and the Canadian government each may nominate one member to serve on the board of the new GM. The retiree benefits trust has selected seasoned auto industry analyst Stephen Girsky. Also selected to serve on the board of directors of the new GM are six current members of the General Motors Corp. board, including Erroll Davis, Neville Isdell, Kent Kresa, Philip Laskawy, Kathryn Marinello and Fritz Henderson. The Canadian government representative and four additional board members to be identified by the U.S. Treasury will be announced at a later date.
Judge Gerber’s order includes a four-day stay before closing of the sale can occur. However, GM said it expects the sale to close in the near future. The new GM’s business is expected to be immediately operational and fully competitive, with an exciting line of new products, a smaller, more focused brand portfolio and the rationalization of its dealer network well underway. Current GM employees will be offered positions by the new company.
In connection with the closing, the current General Motors Corp. will change its name to Motors Liquidation Co. Retained assets will be wound down or sold. A new board of directors will oversee that process and the liquidation of the company under the supervision of the bankruptcy court.
