why did Bankruptcy court judge approve GM sale ?

A U.S. bankruptcy court judge has approved the sale of most of General Motors Corp.’s assets to a successor company.
Judge Robert Gerber of the U.S. Bankruptcy Court for the Southern District of New York on Sunday night approved the sale to NGMCO Inc., an entity funded by the U.S. Treasury Department. NGMCO will change its name to General Motors Co. and continue to operate under GM’s corporate and sub-brands, GM (NYSE: GM) said in a Monday release.
The company said the approval marks another step toward the launch of a new GM. The new company will acquire GM’s strongest operations and have a competitive operating cost structure, GM said in the release, partly because of recent agreements with the United Auto Workers and Canadian Auto Workers unions.
The new company’s common stock will be owned by:
• The Treasury Department — 60.8 percent
• UAW Retiree Medical Benefits Trust — 17.5 percent
• Canadian and Ontario governments — 11.7 percent
• The old GM — 10 percent
In addition to this ownership mix, the old GM and the UAW Retiree Medical Benefits Trust will hold warrants exercisable for 15 percent and 2.5 percent of the interests in the new GM, respectively.
The new GM will be based in Detroit and led by Fritz Henderson as CEO and Edward Whitacre Jr. as chairman.
“This has been an especially challenging period, and we’ve had to make very difficult decisions to address some of the issues that have plagued our business for decades. Now it’s our responsibility to fix this business and place the company on a clear path to success without delay,” Henderson said in the release.
The new GM will have lower leverage and a stronger balance sheet, the release said. That will enable it to reduce its risk, operate profitably at much lower sales volume and reinvest in the key areas of advanced technology and product development, the release said.
Gerber’s order includes a four-day stay before the sale can close. GM said it expects the sale to close in the near future.
The current GM will change its name to Motors Liquidation Co. Its retained assets will be wound down or sold, and a new board will oversee that process and the company’s liquidation under the court’s supervision.