Attorneys file objections to General Motors asset sale

[camaro5]

by Alex Nunez on Jun 20th 2009 at 12:06PM



As Yogi Berra once said, "This is like deja-vu all over again." Yesterday was the deadline for parties to file objections to the General Motors asset sale, and several were indeed filed. If some of this sounds familiar, it's because similar objections were filed during Chrysler's bankruptcy proceedings.

For instance, on Friday, attorneys general from 10 states jointly-filed an objection, saying that the so-called-

New GM's "purchase of substantially all of the operating assets of the debtors should not include an impenetrable shield which insulates (the new GM) from all future product liability claims."

The AGs are upset because under the current plans, New GM basically won't be held responsible for existing or future product liability claims related to vehicles sold before the formation of the new company.

This echoes similar objections raised during the Chrysler proceedings, and if you use that as a measuring stick, things don't look good for the AGs or the injured parties (present or future) on whose behalf they're raising the objections.

When the Supreme Court cleared the way for Chrysler's sale to Fiat, similar claims filed by consumer groups were essentially denied. Fiat-owned "New Chrysler" is not responsible for prior liability claims, leaving injured parties with little to no recourse.

With the objections officially filed, it's all in the court's hands. So now we wait to see what happens.

[Source: The Detroit News]

http://www.autoblog.com/2009/06/20/a...rs-asset-sale/

[Zabo]

Bright side: With voided warranties on all the Camaros out there now you can reflash the car to hell and back without any recourse.