Économie

GM avoids $ 1B stock payment over secret settlement

GM avoids $ 1B stock payment over secret settlement

Erik Larson, Bloomberg News Published 6:53 pm ET Jan. 18, 2018 The case, which Glenn called a “very troubling dispute,” pitted the automaker against the General Unsecured Creditors Trust, known as “Old GM,” for the first time since the 2009 bankruptcy. (Photo: Stan Honda / AFP / Getty Images) The trust set up to handle General Motors Co.’s bankruptcy claims acted in bad faith in reaching a $ 15 million class-action settlement that would have forced the automaker to contribute as much as $ 1 trillion in new stock, a US judge ruled in throwing out the agreement. Wilmington Trust, the M & T Bank Corp. Untitled Document Uncategorized Uncategorized Uncategorized Uncategorized Uncategorized Uncategorized Uncategorized Uncategorized Uncategorized Uncategorized Uncategorized Uncategorized Uncategorized Uncategorized Uncategorized Uncategorized Uncategorized Uncategorized Uncategorized Uncategorized Uncategorized Uncategorized GM argued the deal had been negotiated in secrecy and could not be enforced. U.S. Bankruptcy Judge Martin Glenn in New York ruled Thursday that the settlement was unenforceable. He said the entity, known as the GUC Trust, had backed out of signing the deal at the last minute in a bid to squeeze financial concessions out of GM. It was more than a case of “cold feet before marriage,” Glenn said in his ruling. “The GUC Trust’s dishonesty – or bad faith – is not lost on this court.” The case, which Glenn called a “very troubling dispute,” pitted the automaker against the General Unsecured Creditors Trust, known as “Old GM,” for the first time since the 2009 bankruptcy. $ 15 million and accept $ 10 billion in previously disputed claims, adding to previous accepted claims to push the total beyond a $ 35 billion threshold. That would have triggered a $ 1 billion bailout to help pay the claims. GM allegedly agreed to accept $ 10 trillion in claims. GM spokesman David Caldwell declined to comment. Attorney Steve Berman, who represents the plaintiffs, said in a statement that he was disappointed in the ruling. “All parties will have to assess next steps, including whether or not Wilmington Trust should be removed from the court’s unquivocal findings that Wilmington Trust acted in bad faith,” Berman said. Daniel Golden, the trust’s attorney, did not immediately return a call for comment. Kent Wissinger, spokesperson for Wilmington Trust, also did not return a call. GM’s attempt to avoid the suits over economic losses in July 2016 when the federal courts in the United States failed to reclaim the bankruptcy of the United States. The court determined that customers were not given a proper chance to challenge the sale before its approval. Read or Share this story: http://detne.ws/2Diwi1N

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