GM’s unwanted businesses in bankruptcy won conditional court approval

Article by Christian A., on October 21, 2010

General Motors Corp.'s bankruptcy estate is awaiting the court’s approval of a settlement that would set aside $773 million to resolve environmental claims by the federal government and 14 states.

In a statement, Gary Grindler, acting deputy attorney general, said that a combination of cash and assets, placed in trusts, would clean up and administer 89 properties, 59 of which have been contaminated.

Before the bankruptcy court will decide on GM’s request, there will be a 30-day period to gather public comment.

Grindler said that over half of the money will go to sites in New York and Michigan. The St. Regis Mohawk Tribe, the US Environmental Protection Agency and the states are part of the settlement. The tribe has not yet moved to accept the proposal. A public hearing had been set for Wednesday night.

This deal will lead to the company’s unwanted business to wind down in bankruptcy before a hearing on Thursday at which the Old GM estate will ask the court to approve the terms of its liquidation.

In June 2009 when GM filed for bankruptcy, it sold attractive assets to a recently formed company. However, it left 89 properties under bankruptcy protection. These are the properties at issue now in this settlement. [via BusinessWeek]

Topics: gm, bankruptcy

If you liked the article, share on:

Pin It

Comments

Recommended

Reddit user Jdubbswrx spotted a rather deceptive move coming from the German automotive manufacturer Audi. He posted an image of the supposed exhaust of the new 2018 Audi SQ5 sporting...
by - March 29, 2017
McLaren car owners will be thanking the automotive company as it has decided to roll out new goodies for the 540C, 570S and 570GT sports car line-up. From this series...
by - March 29, 2017
On July 11, Audi is set to reveal its flagship luxury sedan, the all new A8. And at this moment, none of us are sure how this model will look....
by - March 29, 2017
The recent Porsche 911 is definitely considered one of the most elite sports car to grace the roads worldwide. The task of producing its successor is challenging enough for the...
by - March 29, 2017
British startup Zenos, which entered bankruptcy administration earlier this year is now back in business. The Norfolk-based sports car manufacturer was bought by a consortium of investors headed by AC...
by - March 29, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries