GM could exit Chapter 11 this month

Detroit-based GM /quotes/comstock/11i!gmgmq/quotes/nls/gmgmq (GMGMQ 0.82, -0.09, -9.64%) has been in bankruptcy court this week seeking approval to sell most of its assets to the so-called New GM, an entity that will be majority owned by the U.S. Treasury. Without that approval by July 10, the government said it would cut off funding for GM, which could lead to a liquidation.

WStreet.com auto industry analyst David Silver sees the deadline as more bluster than anything.

GM's CEO threatened liquidation by July 30 and now the auto task force is threatening July 10. I wonder if President Obama were to testify, would he throw the gauntlet for the sale to be done by July 4?" he said.

"From an American's point of view, it would be great to see the judge stand up to both GM and the administration because both have been trying to manipulate the courts," added Silver, who isn't convinced GM can pull out of bankruptcy anytime soon.
If and when the automaker does emerge, t

he U.S. government will hold about 60% and the Canadian government and a union-retiree trust fund will hold the rest.

The U.S. is looking to shed its holdings no later than 2018, in line with the Canadian government's plan, people familiar with the matter told the Wall Street Journal.

Canada would hold about 12% of the automaker and proposes to unload at least 5% of its GM shares a year until its fully divested in no more than eight years. The U.S. hasn't said how it plans to reduce its stake in GM.
A day earlier, automakers reported another month of poor U.S. sales, with GM's 33% decline for June even worse than anticipated.

GM's shares have managed to draw buying interest despite the bankruptcy, though it's a near certainty they will eventually be worthless.
Underscoring this, GM reminded investors in a statement Wednesday that it strongly believes "there will be no value for the common stockholders in the bankruptcy liquidation process, even under the most optimistic of scenarios."

The stock ended the week at 82 cents, down 9.6% in Thursday's session.