GM's Bankruptcy Estate Seeks Approval of $773 Million Environmental Accord
General Motors Corp.’s bankruptcy estate seeks public and court approval of a settlement that sets aside $773 million to resolve environmental liabilities.
The mix of cash and assets, to be put into trusts, will clean up and administer 89 properties, 59 of which are known to be contaminated, according to a statement by Gary Grinder, acting deputy U.S. attorney general. A 30-day period to gather public comment will precede a request for bankruptcy court approval.
“More than half of the cleanup funds to be paid to the environmental response trust will be provided for the environmental remediation of sites in New York and Michigan,” Grinder said in the statement.
The resolution of environmental issues paves the way for the old GM estate to end bankruptcy, after U.S. Bankruptcy Judge Robert Gerber in New York in May gave the company a four-month extension of its time in Chapter 11 to resolve environmental liabilities.
The case is In re Motors Liquidation Co., 09-50026, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
To contact the reporter on this story: Tiffany Kary in New York at tkary@bloomberg.net.
To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net.
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