Nebraska and at least 37 other states formed a committee to oppose General Motors Corp.’s planned sale of assets to a company controlled by the U.S. government, according to a court filing today.
The states have said they oppose GM’s use of bankruptcy law to annul contracts with unwanted auto dealers. Their informal, or ad hoc committee may call witnesses at the hearing on GM’s sale set for June 30, including GM Chief Executive Officer Frederick Henderson and Harry Wilson of the Auto Task Force, the group said in today’s filing. GM also faces objections to the sale from bondholders, consumers and steelworkers.
Despite Ms. Ball's comments about GM have better arguments against creditors, BoneYard doesn't think this is going to be the cram-o-rama that Chrysler turned out to be. That said, maybe I am an optimist that law will prevail over policy.