Live From The GM Bankruptcy Hearing
- The judge and attnys have gone over several key dates. Remember, sale hearing is set for June 30. That's just 29 days from now.
- Hearing is over everybody!
- We have gotten through all the agenda items. Amazing.
- First day hearing is moving along at a very fast clip.
- Several more motions regarding GMAC approved.
- Please excuse the spelling errors everybody.
- Interium DIP finanancing approved. The amount is $15 billion.
- Judge says he forgot to approve interium sale procedure motion. Laughter. He approves it.
- Judge praises the language as the "cleanest" he's seen in a while.
- Now moving onto interim order sought by GM, to authorize the atomaker to use of cash collateral.
- Attorney for one of the suppliers, Timkin, objects.
- Lawyer for Canada speaks up in support of sale procedure motion.
- Counselor for GM bondholders is objecting.
- US government attny speaks up in favor of the sale and bidding procedures order. Time is of the essense, he says.
- This motion isn't going to go forward without objections.
- Now we are onto hearing comments on the motion to approve sales procedures.
- It is approved.
- It is a motion to establish procedures for resolving objections by utility companies and prohibiting them from discontinuing service.
- We are now on motion number 18 of 24 scheduled for today.
- Karotkin moves on to motion to pay taxes, another routine motion in bankruptcy.Judge says he hasnt seen such a motion not be granted.
- Karotkin now asking for approval on motion to continue to pay insurance premium, which is granted.
- Gm attny Karotkin back on podium. Asking for approval to pay foreign vendors. Approved.
- Judge approves on an interium basis GM motion establishing global procedures for dealing with reclaimation claims.
- The judge grants the warranty motion too.
- There is no more critical time than now to reassure customers, Smolinsky says.
- Smolinsky is moving on to GM’s motion to keep honoring prepetition obligations to customers and dealers like warranties.
- Judge approves all three motions.
- also on deck are motions to continue Troubled Supplier Assistance Program and continue participation in UST's Auto Supplier Support Program
- Now we are moving onto a GM motion to on critical vendor payments.
- Judge Gerber approves GM motion to keep paying its employees.
- The judge is very mad. He says he will disconnect everyone if he hears another inappropriate joke. Everyone, mute your phones!
- that person is admonished by the judge, who asks, "is someone cracking jokes at a serious hearing?"
- someone listening in on an unmuted phone line cracks a joke: "but that doesnt cover private jets..."
- Smolinsky says no incentive compensation will be paid out, and there will be no first class travel.
- There is feedback from the speaker phone, another GM attny Joseph H. Smolinsky pauses.
- Stephen Karotkin, Miller's partner at Weil, Gotshal & Manges, is now speaking.
- The judge is now starting to approve a series of procedural motions filed by GM.
- Miller of GM is asking the judge for a June 30 hearing on the motion to sell GM's assets to a new entity, majority owned by fed gvt.
- Miller, GM's attny, asks Judge to approve interim DIP financing from UST of $15 billion while the automaker is in bankruptcy.
- Consumer confidence is critical to a company like GM; it cannot survive a prolonged bankruptcy, Miller says.
- Miller, the GM attny, is still at the podium. He is wearing a striped tie with a handkerchief peeking out of the breast pocket.
- Henderson is wearing a pink tie.
- GM ceo Fritz Henderson has his hands clasped in front of him as he listens to Miller detail GM's hardship of recent years.
- As of March 31, GM recorded $82 billion in assets and $172 billion liabilities, miller says.
- The bankruptcy affects only GM's U.S. operations that include 90,000 employees, 60,000 of whom are hourly, Miller says.
- GM employes 235,000 people world wide as of March 31. Of that, 163,000 are hourly. 71,000 are salaried, Miller says.
- The deteriorating economic conditions that began in spring &summer of last year expolded in the fall with Lehman's collapse,Miller says.
- In fact, GM would have been terminated but for Dec 2008 agreement with US Treasury for a $13 billion loan, Miller says.
- GM has been icon of auto industry. But has suffered for the last several years, Miller says.
- The hearing may be a little ragged. People have been up for an extended period of time, Miller says.
- Harvey Miller of Weil Gotshal is speaking. He is representing GM.
- Judge Gerber is here.
- GM Chief Exec Fritz Henderson is in the front row.
- And there are large screens with several camera angles of the courtroom. And audio, of course.
- The overflow room, by the way, is pretty nice. For one,unlike the courtroom, you can usually get a seat.
- It's now 4:15 Colleagues from other media outlets familiar with Judge Gerber tell me he is not known to be on time. Great.
- "All of you standing on the side, you're all going to speak? I don't believe you," the woman who made the annoucement says.
- An announcement is made: everyone who is not speaking before the judge must leave. Now.
- There are many familiar faces here in GM bankruptcy court. Lawyers and journalists from the Chrysler case are here.
- General Motors filed for bankruptcy protection this morning, marking the end of an era in the Ame.. http://tinyurl.com/l6dfrq
- Inside, it's standing room only. There are two overflow rooms. I've set up shop in the overflow room. The courtroom is way too hot and stuffy.
- There was a long security line that snaked outside of the U.S. Bankruptcy Court here in Lower Manhattan. Camera crews are lined up.
- Hi everyone, it's 10 minutes before GM's bankruptcy case is scheduled to go before Judge Robert Gerber.
June 1, 2009; 12:21 PM ET
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