Bankruptcy Judge Rules Against Settlement Triggering GM Payout
January 18 2018 - 3:42PM
Dow Jones News
By Mike Spector
General Motors Co. avoided a potential $1 billion-plus stock
payout to address claims stemming from the auto giant's
ignition-switch crisis after a judge found a settlement between
plaintiffs and a trust for the company's bankruptcy estate
unenforceable.
U.S. Bankruptcy Judge Martin Glenn on Thursday ruled that an
August deal reached between ignition-switch plaintiffs and a trust
tasked with compensating creditors of so-called Old GM couldn't go
forward because the settlement lacked necessary signatures. Old GM
is the term often used to describe the assets GM left behind in
2009 as part of its $50 billion government rescue and bankruptcy
restructuring.
The ruling effectively allowed GM to avoid the consequences of
the deal, which had contemplated forcing the auto maker to pay the
Old GM trust roughly $1 billion in stock to address claims from
car-accident victims and customers seeking recompense for declining
vehicle values arising from faulty ignition switches.
Write to Mike Spector at mike.spector@wsj.com
(END) Dow Jones Newswires
January 18, 2018 15:27 ET (20:27 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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