Bailout Watch 563: GM Asset Sale Draws Closer

Edward Niedermeyer
by Edward Niedermeyer

GM spokesfolks confirm to Automotive News [sub] that the deadline to submit bids for the General Motors asset sale has passed. And surprise! Nobody has taken on the Treasury in the 363 sale’s bidding process. Sorry, America. But AP Services LLC, an affiliate of AlixPartners is having its $58.9 million in fees contested by the US Bankruptcy Trustee. In addition to a $20 million retainer and $16 million for services provided in May, AP Services stands to receive another $13 million upon the completion of the Section 363 sale. As RF’s General Motors Zombie Watch 7 reports, the consulting firm also “seeks a discretionary fee of an unknown but potentially unlimited amount that will be determined” at the sole discretion of GM. The US Trustee is also objecting to the $46.6 million in fees paid to Evercore Group LLC, another GM restructuring consultant.

Meanwhile, Judge Robert Gerber has denied the “Unofficial Committee of Family & Dissident GM Bondholders” official committee status, reports AN [sub]. The unruly group of bondholders did not meet the “exceptional” circumstance that would merit the appointment of another official committee, ruled Judge Gerber, but they are free to file objections to the 363 sale. Gerber argued that “history tells us when someone else pays for one’s expenses, spending restraint goes out the window.”

Edward Niedermeyer
Edward Niedermeyer

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  • Runfromcheney Runfromcheney on Jun 24, 2009

    I think it would be better put as, "I wonder how the Solstice would have done if it was built by someone who actually knew how to build a complete, solid car."

  • Srynerson Srynerson on Jun 24, 2009

    That photo is making me think of Evelyn Waugh's novel, Put Out More Flags.

  • Commando1 Commando1 on Jun 24, 2009
    @ educatordan : I bet you could sell plenty of those as alternatives to the purpose built cop cars that one firm or another is proposing That was EXACTLY my thinking! When the 9C1's were disco'd, many a state trooper said: "I'll give up my Caprice for a Crown Vic when they pry my cold dead..."
  • John Williams John Williams on Jun 24, 2009

    That's a better idea than what Carbon Motors is offering. Get GM to relinquish the intellectual property, copyrights and tooling for the Caprice 9C1, then go to work at modernizing it just enough for the police and taxi/livery industry.