A judge overruled objections by Onondaga County, New York, over environmental contamination, giving approval of liquidation terms to General Motors Corp.'s unwanted businesses in bankruptcy. Earlier this week in Manhattan, U.S. Bankruptcy Judge Robert Gerber said that on March 3, there will be hearing to resolve other disputes so that the plan can be confirmed.
Gerber approved the so-called disclosure statement, permitting creditors to vote on the reorganization that’s considered the largest in history. Gerber explained that the disclosure statement isn’t meant to address any individual constituents' problems.
He ordered the addition of language to demand that a trial to estimate asbestos liabilities would have to be completed before implementing this plan.
He also asked for a claims representative to work on the issue. On Oct. 21, Gerber gave provisional approval of liquidation terms. An agreement with creditors and the U.S. Treasury resolved most remaining objections last week.
According to Onondaga County, the disclosure statement didn’t properly address its claim over PCB contamination from a GM facility. The other objections had come from Appaloosa Management LP, Aurelius Capital Management LP, Elliott Management Corp. and Fortress Investment Group LLC, which hold notes issued by General Motors Nova Scotia Finance Co.
In Oct. 14 court papers, the noteholders said that the plan doesn't indicate whether a claim of $1.61 billion made by a trustee for the Nova Scotia subsidiary and a separate guarantee claim of $1.07 billion will be permitted. [via autonews - sub. required]