General Motors Corp. (GMGMQ) is expected to leave bankruptcy protection early Friday after a stay expired on court approval for the sale of most of its assets to a new entity.

Chief Executive Fritz Henderson will host a press conference at 9 a.m. EDT Friday, joined by Edward Whitacre, who will serve as chairman of the post-bankruptcy GM, to be called General Motors Co.

The company is hammering out final details to close the sale quickly so GM can formally exit Chapter 11, said spokeswoman Julie Gibson.

The expected move comes after one of the most dramatic federal interventions in U.S. industrial history, culminating in the effective privatization of the world's second-largest auto maker.

GM filed for bankruptcy protection on June 1, and its exit comes much earlier than many observers expected, amid concerns that a lengthy process could spill over into the distressed auto-supplier sector.

GM had estimated the bankruptcy would take 60 to 90 days, though the process is in on track to be complete in closer to 40. Earlier this year, GM had warned that the process could take many months, if not years.

The "new GM" will be dramatically smaller, leaner and less encumbered by debt than the 100-year-old auto giant being left behind. As part of the sale, GM's toxic assets will be left behind as a separate company to be liquidated in a sale expected to last several years.

The restructuring is expected to wipe out nearly 70% of GM's crushing debt load. GM entered Chapter 11 with $176 billion in liabilities to retirees and a legion of lenders, including the U.S. government, and warranties. A bankruptcy judge said Wednesday the company will exit with $48 billion in debt. GM's U.S. work force will shrink dramatically as well, to 68,500 employees by the end of 2009, from 91,000 heading into the year. Also going away are four of GM's eight U.S. brands, nearly one-third of its nameplates and hundreds of dealerships.

The U.S. government, keeping GM afloat since December with billions in federal funds, will be majority owner of the newly restructured company. Canadian governments, the United Auto Workers and bondholders in the old GM will hold the remaining stakes.

Amid the change, a familiar face will remain with the new company. GM Vice Chairman and former product chief Bob Lutz will stay with GM indefinitely, according to people familiar with the matter. Lutz stepped down as product czar earlier this year and was expected to retire fully by the end of 2009.

Lutz, widely credited with breathing new life into GM's flagging product lineup, asked that he be allowed to remain with the new company and was allowed to do so, the people familiar said.

In early May, Lutz said in an interview that he would consider staying if offered a position. "No one has asked me to stay," he said.

When asked if Lutz might be offered a position at the new GM, Henderson in late May said that he intended to make use of Lutz's "invaluable" expertise during his remaining months at the company.

But Henderson gave no indication that Lutz might be asked to stay. He said, "We're in the midst of a very orderly transition, from Bob to Tom (Stephens). Tom has the same commitment to product quality, the same passion for product, that Bob has. Tom understands the power of design and the importance of power train and fuel efficiency."

-By Sharon Terlep, Dow Jones Newswires; 248-204-5532; sharon.terlep@dowjones.com