FLINT, Mich. -- A bankruptcy judge has ruled General Motors Corp. can sell off its good assets to the U.S. government.

But the ruling does not mean GM is out of bankruptcy yet.

The judge said a deal could not be completed until Friday.

That’s the same day the U.S. Treasury said it would cut off funding to the automaker if a deal isn’t reached.

Another hurdle for GM to overcome is the many parties objecting to the deal and now a Chicago law firm said it will appeal the ruling.

If the deal goes through, the new GM would be split with the treasury owning more than 60 percent of New GM.

A health care trust run by the UAW would own 16.5 percent and the Canadian government would own 11 percent.

The old GM would own the final 10 percent. The old GM and the UAW trust also hold warrants that would give them each a bigger stake in the company.

General Motors is trying to restructure fast and here in Mid-Michigan the company is set to auction off Buick City and the Inland Fisher Guide plant as a way to get cash.

The judge gave GM the go-ahead to sell its strongest assets and that means Chevrolet and Cadillac will be sold, and the majority owner will be the U.S. government.

The Canadian government will have a stake too, along with the UAW trust.

New GM will be made up of Chevy, Cadillac, Buick and GMC with leaner management and tighter concessions to the unions.

Government ownership of businesses is common, but one local dealer TV5 spoke to said GM does not have a choice.

"The government owning it scares me,” said Chris Graff, of Hank Graff Chevrolet. “But truthfully it's setting the stage for GM to remerge from bankruptcy which is great for all of us."

This new deal is set to be finalized Thursday.

The assets that GM doesn't sell to the new company will become part of the old GM, and will be sold to the highest bidder.

An Obama administration official said while it will pick new members for GM's board of directors in a few weeks, the government wants to shed its stake in the company as soon as possible.

Count on TV5 for continuing coverage as GM works to emerge from bankruptcy protection.