Old GM, Texas Rangers, General Growth: Bankruptcy

The creditors’ committee for old General Motors Corp. filed papers on July 2 against hedge funds including Aurelius Capital Partners LP and Appaloosa Management LP, seeking to set aside a “grossly one-sided” transaction on the day of bankruptcy that they say depleted old GM’s coffers while “disproportionately benefitting” the funds.

The hedge funds were holders of notes issued by an old GM subsidiary named General Motors Nova Scotia Finance Co., which was created to borrow money in the capital markets. Old GM, now formally named Motors Liquidation Co., guaranteed Nova Scotia’s notes.