read the editorial by Philippe Escande page 12

General Motors is dead, long live the "new GM"! After three days of hearings, U.S. bankruptcy judge has finally given, Sunday night, the green light to the transfer of the healthy assets of the motor vehicle manufacturer to a consortium owned by Treasury (60.8), the UAW Union (17.5) and the Canadian Government (11.7). Recalcitrant creditors have until noon Thursday to appeal the decision opens the way to the exit of GM of the scheme of Chapter 11 under which the group is placed on June 1. After the takeover of Chrysler by Fiat, it's a new success for the Obama administration, which put on a drastic restructuring Detroit manufacturers and the adoption of more stringent CO emission standards to give them a new chance.

"As no one can seriously challenge, the only alternative to an immediate sale of GM is its liquidation, a disastrous result for creditors, employees and suppliers who depend on the constructor for their own lives", said judge Robert Gerber in a text of 95 pages. Despite the objections of the bondholders, who challenged this "dummy" sale in criticizing the lack of independent buyer (in contrast to Chrysler), the judge replied that the bankruptcy court has the power to authorize sales of assets where there are assets in order to prevent the death of the patient on the operating table."For most of the experts, GM would have never survived a traditional chapter 11 proceedings if the tribunal had not approved the transfer of its healthy assets to a new consortium before July 10. Procedure for rapid assignment of section 363, the operation could be performed without the prior consent of the bondholders.

"Motors Liquidation Co".

"This decision marks a decisive step in the reinvention of GM. "The new GM will have reduced debt and a stronger balance sheet which, combined with a more modest balance point, enable it to reduce its risk and return to profits", welcomed yesterday the Detroit manufacturer. Main result of his legal split into two entities: the "new GM" is found, ipso facto, shed much of its liabilities, including its 27 billion (more than 19 billion euros) of collateralized debt obligations. In Exchange, bondholders inherit from 10 of the capital.

To reduce its cost base, the new group, the Board of Directors will be chaired by Edward Whitacre, the ex-patron of ATT, has pledged to close a dozen factories and give up to 40 of its network of dealers. At the same time, GM CEO Fritz Henderson announced its intent to downsize by 34 of white collar workers by the end of the year. For its part, the "old GM", which will be renamed "Motors Liquidation Co", will consolidate plants whose closure is scheduled and the set of assets (Hummer, Saturn, Saab) during transfer. In addition to the 50 billion of public money injected into the rescue of the constructor, including 20 billion by the end of the year, the US Government is committed to providing 1.18 billion to facilitate the dismantling of the "old GM".

With the support of the Government, GM refocused around four brands (Chevrolet, Cadillac, Buick and GMC) builds on its hybrid models and the development of a new laboratory of electric batteries to support the launch of the Chevy Volt in 2010. But some experts are skeptical about its chances of survival in the term, given the advance of Toyota and Honda in hybrid and Ford in small economic models.

read the editorial by Philippe Escande page 12