A U.S. District Court judge on Thursday denied a request by a committee of asbestos personal injury claimants to delay the sale of General Motors Corp pending its appeal.

Judge Lewis Kaplan said in court documents that the stay of the sale would likely lead to the liquidation of GM, which is trying to sell its best assets into a New GM funded by the government ahead of a July 10 financing deadline.

The automaker filed for bankruptcy last month after sales of its cars and trucks fell sharply amid the economic downturn.

U.S. Bankruptcy Court had already denied a request to fast- track the appeal and said the sale could go forward after noon Thursday.

GM was pushing ahead with final work on the assets sale to a new company funded by the U.S. Treasury and could close that deal by Friday, people involved in the process said.

That would complete GM's bankruptcy process in just over a month -- a faster timetable than even the aggressive target set by the Obama administration.

GM had no immediate comment on the developments.

The GM sale may face other appeals as well. Plaintiffs in a death liability case being heard in Arizona said in bankruptcy court documents that they plan to file an appeal of the sale of General Motors Corp's assets in district court.

The plaintiffs, who are pursuing a death claim related to a Chevy Malibu product liability claim, include Jin Ah Lee, Jungil Lee, Sang Chul Lee and Dukson Lee.

Neither the lawyer who filed the appeal, Michael Kimm, or lawyers for GM were available for comment.

Kaplan said the court would hear arguments regarding the appeal during the week of July 20, although he said the appeal may be mooted by the actual sale.

(Reporting by Caroline Humer, with additional reporting by Grant McCool and Kevin Krolicki in Detroit; Editing by Maureen Bavdek)

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