Bankruptcy judge okays

GM sale plan

AP, New York

A bankruptcy judge has ruled that General Motors Corp can sell the bulk of its assets to a new company, potentially clearing the way for the automaker to quickly emerge from bankruptcy protection.

US Judge Robert Gerber said in his 95-page ruling late Sunday that the sale was in the best interests of both GM and its creditors, whom he said would otherwise get nothing.

"As nobody can seriously dispute, the only alternative to an immediate sale is liquidation - a disastrous result for GM's creditors, its employees, die suppliers who depend on GM for their own existence, and the communities in which GM operates," Gerber wrote in his ruling.

The ruling comes after a three day hearing that wrapped up Thursday, during which GM and government officials urged a quick approval of the sale, saying it was needed to keep the automaker from selling itself off piece by piece.

"This has been an especially challenging period, and we've had to make very difficult decisions to address some of the issues diat have plagued our business for decades," GM President and CEO Fritz Henderson said in a statement early Monday. "Now it's our responsibility to fix this business and place the company on a clear path to success without delay."

S Korea unveils massive plan for green growth

AFP, Seoul

South Korea Monday unveiled an 84 billion dollar five-year plan to develop environmentally friendly industries and use them as a growth engine for the wider economy.

The plan, approved at a meeting chaired by President Lee Myung-Bak, aims to transform South Korea into one of die world's seven strongest nations in terms of energy efficiency and green technology investment by 2020.

The government will invest 107 trillion (84.4 billion dollars), or 2.0 percent of gross domestic product every year, over the next five years in an effort to reduce reliance on fossil fuels. Lee's office said.

The scheme will help create up to 1.81 million new jobs and generate about 206 trillion won in economic output, it said.

The government will also boost spending on green technology products such as solar-powered batteries and hybrid vehicles, it said.

Lee called for the public to rally behind the plan.

"Because it will have a great impact on the daily lives of the citizens, I believe every citizen must also participate in the move" towards a greener society, he said.

Britain new car sales

fall 15.7pc in June

AFP, London

Sales of new cars in Britain dropped 15.7 percent in June from the figure 12 months earlier, the smallest fall for nearly a year, industry body the Society of Motor Manufacturers and Traders said on Monday.

"The new car market posted its smallest decline since July 2008," the SMMT said in a statement.

Sales of new cars in Britain had dropped 24.8 percent in May from a year earlier.

In a bid to kick-start Britain's ailing auto industry, the government has introduced a scheme whereby 10-year-old cars can be scrapped in return for a 2,000-pound (2,250-euro, 3,050-dollar) discount on a new model.

"We are now beginning to see the positive impact of the scrappage scheme translate into new vehicle registrations," said Paul Everitt, SMMT chief executive.

"SMMT expects the pace of improvement to increase in the coming months, but we can already see the industry making steady progress on the long road to recovery."

Japan to sign crisis loan pact with Indonesia

AFP, Tokyo

Japan is to agree to provide some 15.6 billion dollars in emergency loans to Indonesia in the event of a severe shortage of foreign currency, according to a report Monday.

The 1.5-trilllon-yen deal, created under a new assistance scheme announced in May, was the first of a series of agreements that Tokyo planned to conclude with a number of Asian nations, the Nikkei business daily reported.

Officials from Indonesia's finance ministry would visit their Japanese counterparts in Tokyo as early as Monday to sign the deal, the newspaper said.

The emergency assistance would take the form of a currency swap and was aimed at helping Indonesia cope with a shortage of foreign currency in the event of a severe financial crisis, the Nikkei said.