Hoping to mitigate legal speed bumps that might slow its sprint through Chapter 11 insolvency, the "new" General Motors Corp. will take accountableness for product-liability claims, even for vehicles produced and sold by the company prior to bankruptcy.
The Washington Post reported the new GM will take liability during the term of all future product-liability claims, a point that raised the ire of some consumer groups and state Attorney's General when it became known part of the company'session restructuring blueprint included a plan to shield the new company from any exposure to any liability claims on vehicles the company produced up to the point of its bankruptcy. The objectors said the legal maneuver to shield the restructured GM from such liens was improper.
The Chapter 11 insolvency GM is undergoing is structured to divide the company's precious possession assets from its debts and other liabilities, which be pleased have being left with the "old" GM. Those through monetary or other legal claims against GM will have to seek convalescence from the old GM, which makes the prospect of winning compensation a problematic and likely lengthy prospect.
With a key hearing scheduled tomorrow on the sale of GM's valuable assets to the new, restructured GM, the company announced in a court filing it would amend the plan to make the new GM responsible for product-liability claims going forward. Those with existing claims will have to pursue satisfaction from the primitive GM, howsoever.
It has been reported in that place currently are further than 300 individuals with personal-injury claims involving GM products.
Source: www.autoobserver.com
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