GM sale cleared; path to leave Chapter 11 open

General Motors Corp. sped toward a record-short escape from bankruptcy protection today when a judge’s order approving the sale of most of its assets to a new company went into effect. The order, delayed four days to allow time for appeals, became effective despite a last-minute appeal from plaintiffs in an Arizona product liability case against GM involving a Chevrolet Malibu. GM spokeswoman Julie Gibson says U.S. Bankruptcy Judge Robert Gerber’s order allowing the sale became effective at 11 a.m. GM lawyers are working on paperwork to close the sale as quickly as possible, after which GM would leave bankruptcy protection. Once the world’s largest and most powerful automaker, GM will become a leaner and greener company, cleansed of debts and burdensome contracts that nearly dragged it into liquidation. But it faces brutal international competition and the worst auto sales market in more than 25 years. GM CEO Fritz Henderson will hold a news conference Friday morning in Detroit to explain executive cuts, management changes and the company’s plan to make money by emphasizing quality and fuel economy. He will be joined by Edward Whitacre Jr., who will lead the board of GM.