GM could emerge sooner than expected

NEW YORK, June 18 (UPI) -- General Motors Corp. could emerge from U.S. bankruptcy proceedings ahead of schedule, a restructuring expert said.

The original estimate was for GM to emerge within 90 days of filing, the Detroit Free Press reported Thursday.

Brad Coulter of O'Keefe & Associates said the process can "go pretty quickly," if no significant objections arise. GM Chief Executive Officer Frederick "Fritz" Henderson, meanwhile, said the emergence "could be sooner" than expected.

The biggest challenge could come from creditors.

A group of Indiana state pension funds held up progress for Chrysler's bankruptcy for 10 days in attempt to increase the return on their debt. Although the effort failed, creditors now "know how to counterattack," Professor Anthony Sabino at the St. John's School of Law said.

Moreover, they know how not to attack.

Unsecured creditors will likely file an objection, but chose a different argument than the one used in Chrysler's case.

"The main issue is that the ownership of new GM should be allocated in accordance with the bankruptcy code and not negotiated as a matter of a private deal," said attorney Michael Richman of Patton Boggs LLP, a firm representing some of GM's bondholders.