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GM bankruptcy plan gains approval
Bankruptcy | 2009/07/06 08:33

General Motors cleared a major hurdle toward a quick exit from bankruptcy as a judge approved a government-backed plan to create a "new GM" that sheds major debts of the ailing Detroit automaker.

The ruling released late Sunday paves the way for a "reinvention" of GM, which filed for bankruptcy protection on June 1 and has vowed to emerge as a leaner, more profitable company once freed from its burdensome debts.

Judge Robert Gerber said he had examined about 850 objections to the restructuring plan raised by GM bondholders and others, but found there were "no realistic alternatives" to the asset sale.

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

GM hailed the decision as "another step toward the launch of an independent new GM."

GM president and chief executive Fritz Henderson added that now "it's our responsibility to fix this business and place the company on a clear path to success without delay."

The judge said GM could implement the plan as soon as Thursday at 1600 GMT pending any additional delay imposed by an appellate court.

At least one appeal had been filed Monday, from accident victims seeking to hold the new GM accountable for any product liability damages.

Once the world's largest corporation, the new GM will emerge as a significantly smaller automaker with fewer brands and employees, and a diminished global footprint.

GM's plan seeks to follow the script of Chrysler, which spent 42 days in bankruptcy protection before emerging as a new company run by Italy's Fiat.

As with Chrysler, GM's old corporate entity will remain under supervision of the bankruptcy court, but the new GM will not be burdened by the lengthy process.



Scientist's mental state at issue in NYC hearing
Court Watch | 2009/07/06 07:33

A U.S.-trained Pakistani scientist accused of helping al-Qaida and shooting at FBI agents in Afghanistan has been forced to appear in Manhattan court by a judge's order.

Aafia Siddiqui (ah-FEE'-uh see-DEE'-kee) kept her hands folded as she entered court Monday surrounded by marshal's deputies. When the judge said that she was presumed innocent, she shook her head in apparent disagreement.

U.S. District Judge Richard Berman said he would not rule on whether Siddiqui is competent to stand trial, but would hear the testimony of mental health experts.

Psychologists for both prosecutors and the defense say Siddiqui has claimed she saw some of her children in her cell. They say seemed especially disturbed by required strip searches.

Berman has entered a not guilty plea for her.



Mass. mom pleads not guilty to denying son meds
Court Watch | 2009/07/06 06:34

A woman accused of withholding cancer treatment from her autistic son by canceling appointments and not filling prescriptions pleaded not guilty Monday to an attempted murder charge in the boy's death.

Kristen LaBrie was ordered held on $15,000 cash bail during her arraignment Monday in Salem Superior Court. She did not speak during the brief hearing, except to enter the pleas to attempted murder, child endangerment and other charges.

LaBrie's son, Jeremy, had been diagnosed with leukemia in 2006. He was 9 when he died in March.

Prosecutors say LaBrie, 37, canceled appointments for chemotherapy treatment, did not fill at least half her son's prescriptions and tried to deceived doctors into believing she was giving the boy the proper care.

Her attorney, Kevin James, said Monday that LaBrie was a victim, had financial trouble and took care of the boy on her own.

LaBrie had earlier been charged with child endangerment; a grand jury returned the more serious indictment Friday.



African leaders denounce international court
International | 2009/07/06 05:35

After bitter wrangling, Africa's leaders agreed Friday to denounce the International Criminal Court and refuse to extradite Sudan's President Omar al-Bashir, who has been indicted for crimes against humanity in Darfur.

The decision at the African Union summit says AU members "shall not cooperate" with the court in The Hague "in the arrest and transfer of President Omar al-Bashir of the Sudan to the ICC."

Sudan welcomed the move, and other Africans said it was a signal to the West that it shouldn't impose its ways on Africa. A human rights group said the decision was a gift to a dictator.

The 13th AU summit of heads of state, which concluded Friday in Sirte, Libya, also "expresses its preoccupation about the behavior of the ICC prosecutor" Luis Moreno Ocampo, whom African officials describe as too hard on Africans. The ICC has launched investigations into four cases since it was created seven years ago — all of them in Africa.

Sudan rejoiced at the AU's rebuttal of the ICC. "It's the confirmation of what we always said: The indictment is a political thing, not a legal thing," Foreign Minister El Samany El Wasila told The Associated Press just after the decision was made public.

El Wasila declined to comment on whether al-Bashir would now feel free to travel to the 30 African countries that are party to the ICC. "We don't even want to think about it anymore," he said of the international court.



Rowe deciding whether to seek custody
Court Watch | 2009/07/06 03:36

Deborah Rowe, the ex-wife of Michael Jackson and the mother of two of his children, has not reached a final decision on whether to seek custody of the children, a lawyer said Thursday.

Attorney Eric M. George made the disclosure on a telephone conference call but declined to take questions.

"The truth is that Debbie has not reach a final decision concerning the pending custody proceedings," he said. "When Debbie does take a position in the public forum of the court, those positions will of course be conveyed to all interested persons."

Earlier in the day, Superior Court Judge Mitchell Beckloff rescheduled a guardianship hearing for July 13 at the request of attorneys for Rowe and for Katherine Jackson, the singer's mother, who has temporary guardianship of her son's three children.

The legal documents filed in connection with the request were not accompanied by any petition for custody by Rowe.



Reputed mob boss pleads guilty in Mass. bribe case
Court Watch | 2009/07/06 02:38

The reputed underboss of the New England mob has pleaded guilty to federal bribery charges in a plea deal that will send him to prison for six years.

Carmen "The Cheeseman" DiNunzio pleaded guilty Wednesday to bribing an undercover FBI agent posing as a state highway department official in an attempt to win a $6 million contract on the Big Dig highway project.

DiNunzio is expected to plead guilty next week to separate state gambling and extortion charges.

Prosecutors have agreed to wrap both cases together under one plea agreement and to recommend a sentence of six years in federal prison. Sentencing was scheduled for Sept. 24.

Authorities say the 51-year-old DiNunzio has been underboss of the New England branch of the Mafia since 2004.



Montreal woman gets 15 years in son's Vt. drowning
Court Watch | 2009/07/02 10:16
A Vermont judge has sentenced a Montreal woman to 15 years in prison for drowning her young son three years ago.

Judge Michael Kupersmith issued the sentence to 51-year-old Louise Desnoyers (day-noy-AY') on Wednesday in Grand Isle County after hearing her apology to family, friends and the court.

Desnoyers pleaded no contest this year in the death of Nicholas Desnoyers-Langlois. She had originally pleaded not guilty by reason of insanity.

The judge says he determined that Desnoyers knew what she was doing when she drowned the 8-year-old boy in August 2006.

She told authorities she held her son under water so he wouldn't have to suffer through her impending breakup with his father.



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