GM Reaches $23.8 Million Pollution Settlement With U.S.

General Motors Corp. (GM) agreed to pay as much as $23.8 million to settle liability for environmental cleanup costs in New Jersey, Maryland and Missouri, the U.S. said.

The agreement resolves Detroit-based GM’s pre-bankruptcy liability for U.S. claims filed under the federal Superfund statute, according to a statement today by the office of U.S. Attorney Preet Bharara in Manhattan. Under the settlement, the U.S. Environmental Protection Agency will receive allowed claims of $20.9 million in GM’s bankruptcy proceeding, plus $2.89 million of cleanup work at the sites.

GM, which filed for bankruptcy in June 2009, sold assets to a new company that went public as General Motors Co. The allowed bankruptcy claim will be paid in stock and warrants of “New GM.” The cash value of the allowed claim probably will be less than $20.9 million, the U.S. said.

The three polluted sites covered by the agreement include the Diamond Alkali Superfund Site, which comprises parts of the Passaic and Hackensack Rivers, Newark Bay, the Arthur Kill and the Kill Van Kull in New Jersey. Also covered are the Kane & Lombard Superfund Site in Baltimore County, Maryland, and the Hayford Bridge Superfund Site in St. Charles, Missouri.

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: Bob Van Voris in U.S. District Court in rvanvoris@bloomberg.net.

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.