Automotive

GM CEO says automaker is on road to recovery

Wednesday, July 01, 2009

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Matt Franklin
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DETROIT (WJRT) -- (06/30/09)--Thirty days after filing for bankruptcy, General Motors Corp. is now on the road to recovery.

Tuesday, CEO Fritz Henderson stated his case before a bankruptcy judge on why the courts need to act quick and approve the new GM.

Henderson told the court that in order for the automaker to survive, a sale has to approved by the end of next week on July 10.

He says if that doesn't happen, then GM will be forced to liquidate.

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With his legal team by his side and protestors urging him to save the middle class, Henderson entered a New York bankruptcy court.

He told Judge Robert Gerber GM's business is doing better.

Automotive News is reporting that's mainly because customers, suppliers and others are banking on GM getting the green light to sell its best assets, which include, Chevrolet, Cadillac, GMC and Buick to the new GM, which will keep the same name.

Henderson reportedly spent most of the day being grilled with objections and questions about the sale from creditors, bondholders and some with claims against the company.

Approval of the sale will also mean the government-owned company will have access to an additional $30 billion in loans. Henderson says the automaker has every intention on paying them back.

Auto analysts say despite GM being a very large and complex company, the bankruptcy process is moving forward without any roadblocks.

Henderson's testimony is expected to last a few days.

The automaker wants to spend no more than 60 to 90 days in bankruptcy.