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GM Again Faces $1 Billion Payout Over Ignition Switches
Lawyers are reexamining a previous deal that would require General Motors Co. to pay $1 billion in stock to creditors of pre-bankruptcy “old GM.”
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Lawyers are reexamining a previous deal that would require General Motors Co. to pay $1 billion in stock to creditors of pre-bankruptcy “old GM,” Bloomberg News reports.
The original deal with a trust set up to handle old GM creditors was rejected by U.S. Bankruptcy Court Martin Glenn earlier this year because it lacked the proper signatures. But Bloomberg notes the court also chided lawyers for a last-minute substitute deal that sidestepped GM’s $1 billion commitment.
Now the trust has a new legal team and is pursuing a plan to revisit the original agreement. Talks are likely to continue for another 30 days. Judge Glenn is asking for an update on April 9.
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