GM plan gets green signal; may exit bankruptcy soon

NEW YORK: General Motors has received the approval for its restructuring plan from the US Court, paving the way for the auto maker to steer itself out of bankruptcy soon.

The once-mighty car maker filed for bankruptcy on June 1, after being severely hit by falling sales due to the financial turmoil.

The restructuring proposal which would see the US government snapping up more than 60 per cent in the new company, was approved by judge Robert E Gerber of the US Bankruptcy Court for the Southern District of New York.

Going by the plan, General Motors' assets would be sold to NGMCO, Inc, an entity funded by the US Department of Treasury, the auto maker said in a statement today.

"In connection with the closing of the sale transaction, NGMCO, Inc will change its name to General Motors Company and continue to operate under GM's historic corporate and sub brands," it said.

Approving the restructuring plan, Gerber said bankruptcy is the only available means to preserve the continuation of General Motor's business.