The New GM Emerges from Bankruptcy, While the Old GM Remains
General Motors emerged from bankruptcy today after an all-night paperwork session transferred its good assets to a new company partly controlled by the U.S. government.
But that doesn’t mean an end to the case for the lawyers, the Wall Street Journal (sub. req.) reports. The remnants of the old company will be liquidated in bankruptcy court, a process that could take years.
Among those fighting over the company’s remnants will be people who filed suit before the bankruptcy alleging injury from defective GM cars or asbestos in the automaker’s brakes.
The new GM will be free of debt and financially draining contracts, the Associated Press reports. A source who asked to remain anonymous told the wire service that lawyers spent the night overseeing signatures on a two-foot-high pile of documents that paved the way for the transfer of GM’s good assets to the new company.
In a press conference this morning, CEO Fritz Henderson said the new GM will focus on customers and quality, the New York Times reports.
