Accident Litigants Challenge GM's Sale

The four day window granted by Judge Robert Gerber to complete the sale of GM's assets over to the new company has left a group of accident litigants involving GM vehicles room to file a notice to appeal the sale. They are now trying to convince the court to delay or reverse the process, detnews.com reported.

Their endeavor, even if it was not detailed by Steve Jakubowski, the Chicago attorney who filed it, has little chance of succeeding. as said by Judge Gerber himself, "if GM liquidates, there will not only be nothing for stockholders; there will be nothing for unsecured creditors."

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.

The decision came after a group of nine state attorneys general objected GM's reorganization on the grounds that it would deprave customers of protection against product defects under state laws.

Otherwise, most of the parties involved praised today's ruling. Michigan Rep. Gary Peters told the source the ruling "is the right decision and is in the best interest of all GM stakeholders, including the company's bondholders and the millions of workers whose livelihoods depend on the company."

"This is an important benchmark in the launch of the 'New' GM, which hopefully will soon be able to turn its full attention and engagement to selling cars and aggressively developing advanced technologies for the next generation of vehicles," Rep. Sander Levin added.