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NY1:\1616158\14\YN1@14!.DOC\72240.0635
 Harvey R. MillerStephen KarotkinJoseph H. SmolinskyWEIL, GOTSHAL & MANGES LLP767 Fifth AvenueNew York, New York 10153Telephone: (212) 310-8000Facsimile: (212) 310-8007Attorneys for Debtorsand Debtors in Possession
UNITED STATES BANKRUPTCY COURTSOUTHERN DISTRICT OF NEW YORK
---------------------------------------------------------------x:
In re
:
Chapter 11 Case No.
:
GENERAL MOTORS CORP.,
et al.
,
:
09-_____ (___)
:
Debtors.
:
(Jointly Administered)
 :---------------------------------------------------------------x
MEMORANDUM OF LAW IN SUPPORT OF DEBTORS’ MOTION PURSUANTTO 11 U.S.C. §§ 105, 363(b), (f), (k), (m) AND 365, AND FED. R. BANKR. P. 2002,6004 AND 6006, TO (I) APPROVE (A) THE SALE PURSUANT TO THE MASTERSALE AND PURCHASE AGREEMENT WITH VEHICLE ACQUISITION HOLDINGSLLC, A U.S. TREASURY-SPONSORED PURCHASER, FREE AND CLEAR OF LIENS,CLAIMS, ENCUMBRANCES AND OTHER INTERESTS; (B) THE ASSUMPTIONAND ASSIGNMENT OF CERTAIN EXECUTORY CONTRACTS AND UNEXPIREDLEASES; AND (C) OTHER RELIEF; AND (II) SCHEDULE SALE APPROVAL HEARING
 
 TABLE OF CONTENTS
 
Page
 
NY1:\1616158\14\YN1@14!.DOC\72240.0635
i
 
TABLE OF AUTHORITIES.........................................................................................................iiPRELIMINARY STATEMENT...................................................................................................1STATEMENT OF FACTS............................................................................................................3ARGUMENT.................................................................................................................................3I. THE 363 TRANSACTION IS AN EXERCISE OF SOUND BUSINESSJUDGMENT AND SHOULD BE APPROVED UNDER SECTION 363(b)...................3A. The 363 Transaction Is The Only Alternative To Preserve Value AndObtain The U.S. Government Support Necessary For The Company ToFinance Its Operations...........................................................................................9B. The 363 Transaction Is Also Justified Because It Avoids The DireConsequences Of A Liquidation..........................................................................11C. The Debtors Have Satisfied All Of The Other Section 363(b) Factors...............13II. THE 363 TRANSACTION SHOULD BE APPROVED FREE AND CLEAR OFALL LIENS, CLAIMS, ENCUMBRANCES AND OTHER INTERESTS...................20III. THE 363 TRANSACTION IS NOT A
SUB ROSA
PLAN.............................................23IV. THE ASSUMPTION AND ASSIGNMENT OF CERTAIN EXECUTORYCONTRACTS AND UNEXPIRED LEASES IS NECESSARY TOEFFECTUATE THE 363 TRANSACTION...................................................................27V. THE COURT SHOULD WAIVE OR REDUCE THE PERIODS REQUIRED BYBANKRUPTCY RULES 6004(g) AND 6006(d)............................................................30CONCLUSION............................................................................................................................31
 
 
NY1:\1616158\14\YN1@14!.DOC\72240.0635
ii
TABLE OF AUTHORITIESCases Page(s)
 Abel v. Shugrue (In re Ionosphere Clubs, Inc.)
,
 
184 B.R. 648 (S.D.N.Y. 1995)...............................................................................................24
 Am. Living Sys. v. Bonapfel (In re All Am. of Ashburn, Inc.)
,
 
56 B.R. 186 (Bankr. N.D. Ga. 1986),
aff'd 
, 805 F.2d 1515 (11th Cir. 1986).........................23
 In re Andy Frain Servs., Inc.
,
 
798 F.2d 1113 (7th Cir. 1986)..................................................................................................8
 Apex Oil Co. v. Vanguard Oil & Serv. Co. (In re Vanguard Oil & Serv. Co.)
,
 
88 B.R. 576 (E.D.N.Y. 1988).................................................................................................18
 Aronson v. Lewis
,
 
473 A.2d 805 (Del. 1984).........................................................................................................7
 Baker v. Latham Sparrowbush Assocs.
,
 
72 F.3d 246 (2d Cir. 1995).....................................................................................................14
 In re BearingPoint, Inc.
,Case No. 09-10691 (Bankr. S.D.N.Y. Apr. 7, 2009)..............................................................18
 In re Betty Owens Sch., Inc.
,
 
1997 WL 188127 (S.D.N.Y. Apr. 17, 1997)..........................................................................14
 In re Bon Ton Rest. & Pastry Shop, Inc.
,
 
53 B.R. 789 (Bankr. N.D. Ill. 1985).......................................................................................29
 In re Bygaph, Inc.
,
 
56 B.R. 596 (Bankr. S.D.N.Y. 1986)......................................................................................29
Carlisle Homes, Inc. v. Arrari (In re Carlisle Homes, Inc.)
,
 
103 B.R. 524 (Bankr. D.N.J. 1989)........................................................................................29
 In re Child World, Inc.
,
 
142 B.R. 87 (Bankr. S.D.N.Y. 1992)......................................................................................28
 In re Chrysler LLC 
,Case No. 09-50002 (Bankr. S.D.N.Y. May 7, 2009)..............................................................18
Citicorp Homeowners Serv., Inc. v. Elliot (In re Elliot)
,
 
94 B.R. 343 (E.D. Pa. 1988)...................................................................................................22
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