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Old GM says New GM lied, should pay $10B in lost-value claims.
Left Lane News
By: Justin King
December 18, 2014


General Motors is facing a new enemy in its ongoing court battles, thrown under the bus by the 'Old GM.'

The pre-bankruptcy entity, which still lives on as a trust, has accused the 'New GM' of illegally hiding the defect during the bailout proceedings. The trust argues that the surviving company is consequently responsible for paying lost-value claims and other compensation related to the ignition-switch defect.

The Old GM's position does not come as much as a surprise, as the New GM asked courts to redirect customer lawsuits to the pre-bankruptcy company. The Old GM is responsible for managing old debts, however it claims to be short on funds to pay damages in a flurry of lawsuit.

"New GM's request exceeds the bounds of both constitutional due process and the sale order, and therefore, must be denied," the trust wrote in a filing, as quoted by Bloomberg.

GM has continued to defend its legal position, noting in a follow-up statement that the issues "will be decided by bankruptcy court." The court's decision will be significant, potentially exposing the company to claims worth $10 billion.
 

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" New GM" trying to claim protection from the lawsuit because of 363 Bankruptcy sale,while " The trusts " counterclaiming no such Bankruptcy protections extend itself to this lawsuit.
 

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Pretty good example of either bad writing or bad research.

First of all, the "OLD" GM no longer exists. It went defunct on March 31, 2011. So the bloody idiot writer's headline claiming the "Old GM says.." is pure rubbish.

Secondly, as it's actual name suggests, the "Motors Liquidation Company" sole purpose was to liquidate the remaining parts of General Motors Corporation. (Recapping: after bankruptcy approval, the new General Motors Company picked and chose the assets it wanted to buy from the General Motors Corporation. The leftovers changed it's name from General Motors Corporation to Motors Liquidation Company. It's purpose was to dispose of the remaining debts and liquidate whatever was left, with the money from that liquidation going towards a trust to pay whatever future claims might develop.......).

Third, there were 3 or 4 trusts set up from the proceeds of the liquidation of MLC (aka: the "Old GM"), and it's these trusts that are suing are attempting to sue the new GM because these trusts are responsible for selling off the last of GM's property to pay off the last creditors (who are only getting cents on the dollar) and they can't do it if they're paying the large number of suits over the lost values of customer's cars....which they rightfully thought the new GM would be paying.

In short, the new GM directed lawsuits on lost car values to the trust, where a group of trust lawyers are countering that the ignition issue wasn't revealed during bankruptcy so they shouldn't be responsible, so off to court it goes.
 

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Pretty good example of either bad writing or bad research.

First of all, the "OLD" GM no longer exists. It went defunct on March 31, 2011. So the bloody idiot writer's headline claiming the "Old GM says.." is pure rubbish.

Secondly, as it's actual name suggests, the "Motors Liquidation Company" sole purpose was to liquidate the remaining parts of General Motors Corporation. (Recapping: after bankruptcy approval, the new General Motors Company picked and chose the assets it wanted to buy from the General Motors Corporation. The leftovers changed it's name from General Motors Corporation to Motors Liquidation Company. It's purpose was to dispose of the remaining debts and liquidate whatever was left, with the money from that liquidation going towards a trust to pay whatever future claims might develop.......).

Third, there were 3 or 4 trusts set up from the proceeds of the liquidation of MLC (aka: the "Old GM"), and it's these trusts that are suing are attempting to sue the new GM because these trusts are responsible for selling off the last of GM's property to pay off the last creditors (who are only getting cents on the dollar) and they can't do it if they're paying the large number of suits over the lost values of customer's cars....which they rightfully thought the new GM would be paying.

In short, the new GM directed lawsuits on lost car values to the trust, where a group of trust lawyers are countering that the ignition issue wasn't revealed during bankruptcy so they shouldn't be responsible, so off to court it goes.
Actually, the trusts are not suing "New"GM, "New" GM is trying to defer the lawsuit to the trustess by claiming a lack of legal responsibility due to the 363 sale that created " New" GM. The trustees are countering the 363 Bankruptcy sale protections doesn't extend themselves to this lawsuit.
 

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Actually, the trusts are not suing "New"GM, "New" GM is trying to defer the lawsuit to the trustess by claiming a lack of legal responsibility due to the 363 sale that created " New" GM. The trustees are countering the 363 Bankruptcy sale protections doesn't extend themselves to this lawsuit.
Sounds like GuionM missed a step or two in his fuss..............


"The pre-bankruptcy entity, which still lives on as a trust.............."

Whatever the case is, you can bet the lawyers will deliberate it in court as long as one of the two still has money left in the drawer.
 

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Sounds like GuionM missed a step or two in his fuss..............


"The pre-bankruptcy entity, which still lives on as a trust.............."

Whatever the case is, you can bet the lawyers will deliberate it in court as long as one of the two still has money left in the drawer.

He at least did a way better job than the author of the article. ;)
 

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Glad our taxpayer dollars are going to bail GM out of its own negligence.
On a High Note. Your Tax $$$$$'s did make 1 Billion Dollars, on the sale of Ally (formally known as GMAC) Yesterday.

The selling of GMAC was the beginning of the end of Old GM.

Yes parting off a Company is hard, some parts make money, some parts lose money. It is easier to sell the parts that make money. GMAC has always made money. Look at the Stat's..

GMAC was there to help Customer's buy New GM's, and there to help Dealer's stock. The bail out of GMAC/Ally has now added 1 Billion to the Government's coffers. What did purchasing GM pay back to the Tax Payer?
 

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It comes back to wanting GM saved and what everyone was prepared to do for the common good.
As far as I'm comcerned, a collapsed GM would have been the very worst thing for the whole community,
the degree of assistance will cause bar arguments for years but the future is looking forward, not back.
 
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