...Public issue likely in 2010

Bloomberg
Posted: Friday, Jul 03, 2009 at 0009 hrs IST
Updated: Friday, Jul 03, 2009 at 0009 hrs IST

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Job loss pain crosses boundaries, sectors All that Goldman Sachs outsiders don’t get

: General Motors Corp, the bankrupt automaker selling most of its assets to the US government, may file for an initial public offering of its stock in 2010, said an adviser to the Obama administration’s auto task force.

GM was in bankruptcy court on Wednesday seeking approval to sell most of its assets to the treasury, which is paying for the company with the more than $27 billion in loans it has made to the automaker.

“We plan to sell our stake at some point,” Harry Wilson, the auto task force adviser, testified Wednesday, saying the government won’t make an open-ended commitment to fund GM. “We anticipate an IPO sometime in 2010.” Some bondholders and tort claimants have objected to the sale, challenging the decision by GM to sell most of its assets to the treasury instead of proposing a traditional Chapter 11 turnaround plan and allowing creditors to vote. Wilson said a sale provided “speed, certainty and the ability to leave behind liabilities,” versus restructuring in a traditional Chapter 11 plan.

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