Accident Litigants Denied Appeal
Today, Judge Gerber refused their filings, as he did with the stay request submitted by a group of asbestos claimants. Even if he hasn't motivated his ruling, the Judge said he will come back on the matter in a written form sometimes today.
The two groups tried to delay or reverse GM's sale on the grounds that General Motors Company, the entity which will replace the current GM, will be created from assets sold "free and clear" of such claims and they would be unable to sue.
If approved, the sale would make the injured people seek recourse from the "Old GM" left in bankruptcy court, where they will not be able to recover much, the two groups said. Before today's ruling, GM asked for the the groups to be made to post a bond in "an amount equal to the potential direct harm of $80 billion," pending the results of an appeal.
GM's lawyers told Reuters that if the sale doesn't close, there is no alternative, so a group of tort and asbestos claimants are prepared to see these assets go down in flames,"
In late June, GM agreed to assume liability for future product defects in an attempt to speed up their exit from Chapter 11 protection. At the time, the company said it would change the terms of the proposed asset sale to meet the objections raised by those involved, to avoid a sale delay.