Monday, May 26, 2014

GM Customers Face Low Payments if Told to Sue Predecessor


General Motors Co. customers suing the automaker for as much as $10 billion over losses in value of their recalled cars would face meager payments if told to claim the money from its predecessor, based on financial data filed in court.

So-called old GM had only $1.1 billion as of March 31 to pay existing claims of $32 billion, it reported in U.S. Bankruptcy Court in Manhattan. The company that GM split from in 2009 has been liquidating assets to pay creditors, including accident victims. So far they’ve received new GM stock and warrants at an estimated rate of 30 cents for each dollar claimed, according to court records.

GM, after recalling 2.59 million cars with faulty ignition switches, is fighting at least 79 lawsuits over economic losses....

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