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From the ArcaMax Publishing, Business News Newsletter:
http://www.arcamax.com/news/businessnews/s-652459-865746

'Old GM' to get $1.875M in settlement

DETROIT (UPI) -- General Motors Corp.'s bankruptcy estate would get $1.875 million in a pending lawsuit settlement, documents indicate.

The estate, sometimes known as "Old GM" or officially as Motors Liquidation Co., has been battling with the emerged General Motors Co. and lending arm GMAC Inc. over the fate of a $2.5 million escrow account created last year in connection with the September 2008 collapse of the nation's largest Chevrolet dealer, Bill Heard Enterprises Inc., The Detroit News reported.

Court documents filed last week show that under a proposed settlement, "Old GM" -- which faces $35 billion in claims from creditors -- would get the lion's share at $1.875 million, the newspaper said.

"The debtors believe that the settlement agreement represents a fair and reasonable settlement and compromise," bankruptcy estate lawyer Joseph Smolinsky wrote in a court filing.

This news arrived on: 11/22/2009
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