DETROIT— Although General Motors is much larger than Chrysler, the company is likely to emerge quickly from U.S. Bankruptcy Court, lawyers and restructuring experts say.
Much of the hard work already is completed:
-- GM has a new concessionary contract with the UAW workers union.
-- Ninety-eight percent of the 1,323 dealerships being terminated by GM have signed wind-down agreements.
-- A majority of GM's bondholders with $27 billion in unsecured debt have agreed to accept 10 percent of the equity in a new GM. That makes it more difficult for disgruntled bondholders to block the deal in court.
Last week, GM CEO Fritz Henderson said the company might leave Chapter 11 sooner than the 60- to 90-day window originally envisioned. GM filed Chapter 11 on June 1.
GM wants to emerge from bankruptcy as soon as possible to restore confidence of potential auto buyers and get dealer orders flowing again. Parts suppliers are starving for revenue as GM operates its plants on and off during bankruptcy.
On June 30, a hearing is scheduled in Bankruptcy Court in New York on a motion for the so-called Section 363 sale of GM's healthy assets to a group headed by the U.S. government.