Old GM enters $51M deal with US govt to resolve environmental liabilities

Article by Christian Andrei, on March 9, 2011

A $51 million civil settlement has been entered by Motors Liquidation Co. and the federal government to resolve environmental liabilities at 34 sites, says Autonews. Motors Liquidation, which is commonly known as "Old GM," is the company that took over bad assets left behind in General Motors Corp's 2009 bankruptcy.

This settlement is the eighth involving environmental liabilities for the company. U.S. Attorney Preet Bharara in New York said that over $800 million has been recovered for cleanup.

Under this settlement, the U.S. Environmental Protection Agency will receive stock and warrants in the new General Motors Co. for the coverage of about $36 million of claims. About $15 million has been added for the cleanup work. The 34 sites are located in 11 U.S. states.

Last Thursday, U.S. Bankruptcy Judge Robert Gerber approved Old GM's bankruptcy plan, which included a $536 million trust for environmental cleanup at former GM industrial sites.

Bharara said that the latest settlement is subject to bankruptcy court approval. It also resolves claims under the Clean Air Act; the Comprehensive Environmental Response, Compensation and Liability Act; and the Resource Conservation and Recovery Act.

Topics: gm

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