Obama sees GM emerging quickly from bankruptcy

By John Crawley

WASHINGTON (Reuters) - U.S. President Barack Obama said on Monday he was confident General Motors Corp would emerge quickly from bankruptcy, saying the government is in a reluctant position as a controlling shareholder.

Obama, in remarks at the White House just hours after GM sought bankruptcy protection in New York, said the automaker -- not his administration -- would make decisions on plants, new products and day-to-day operations.

"Our goal is to get GM back on its feet, take a hands off approach and get out quickly," Obama said.

A White House/Treasury task force overseeing the restructuring of GM and Chrysler estimates that GM's bankruptcy would take 60 to 90 days to complete.

Chrysler sought creditor protection on April 30 and is poised to exit within days after gaining a bankruptcy judge's approval of its plan to form an alliance with Italy's Fiat.

Obama said painful debt and cost-cutting concessions by labour and creditors achieved a viable and achievable plan for GM to complete its restructuring and give it a chance to succeed, providing it is well managed and sales rebound.

"When that happens, we can truly say that what is good for General Motors and all who work there is good for the United States of America," Obama said, borrowing a phrase from long ago that reflected GM's iconic status in the U.S. economy.

The administration will hold a 60 percent stake in GM once it emerges from bankruptcy in return for $50 billion in assistance. Nearly half of that money has already been extended to the company in bailouts. The rest will come in debtor financing and the administration does not expect GM to write any writeoff of the new loans.