No other company submitted a competing offer to the U.S. Treasury Departments bid to buy the healthy assets of General Motors from Chapter 11 protection, GM spokeswoman Julie Gibson confirmed today.
The deadline for submitting bids passed Friday, Gibson said. She said no other bids were expected.
The federal government has pledged up to $30 billion in Chapter 11 financing to GM to allow the automaker to operate in bankruptcy and successfully exit. That is in addition to $19.4 billion the Treasury has sent to GM since late December.
A June 30 hearing is scheduled for the government to buy the healthy assets of GM under a Section 363 sale and allow the new GM to exit Chapter 11 protection. GM filed for bankruptcy June 1.
The government has stepped in to help cash-strapped GM because tight credit markets made it impossible for the carmaker to raise new financing privately. The government also financed Chrysler Group LLCs exit from Chapter 11 bankruptcy under the control of Fiat S.p.A.
If the U.S. Bankruptcy Court in New York approves the Section 363 sale, GM will emerge from Chapter 11 owned 60 percent by Treasury. An additional 12.5 percent will be owned by Canadian government entities, 17.5 percent by a UAW-administered retiree health care trust and 10 percent by current bondholders.
Objection to $58.9 million in consultant fees
The absence of additional bids for GM originally was contained in bankruptcy briefs filed in court Monday by Diana Adams, the U.S. Bankruptcy Trustee in the GM case.
Adams noted the bidding process while objecting to restructuring fees charged GM by an affiliate of suburban Detroit consultant AlixPartners LLP.
Adams called excessive the $58.9 million in fees collected to date by AP Services LLC, the AlixPartners affiliate. Those fees include a $20 million retainer and $16 million for services provided in May when GM was preparing for its Chapter 11 filing, the motion said. The automaker entered bankruptcy on June 1.
A spokesman for AlixPartners declined comment today.
The objection noted that AP Services stands to receive another $13 million upon the completion of the Section 363 sale. The consultant also "seeks a discretionary fee of an unknown but potentially unlimited amount that will be determined" at the sole discretion of GM, the motion said.
Adams said AlixPartners executive Albert Koch has been designated as the chief restructuring officer in the bankruptcy. He is scheduled to earn $835 an hour to see to the orderly disposition of GM assets and debts left in bankruptcy after the "good GM" exits.
Adams also objected in court documents Monday to $46.6 million in fees paid another GM restructuring and financial consultant, Evercore Group LLC.
The U.S. Trustee's office isn't commenting beyond the motion, said spokeswoman Jane Limprecht.