When a company as big as General Motors goes through bankruptcy there are a lot of issues to resolve At a key hearing this week, concerned people, ranging from motorists who feared that their lawsuits for damages against GM would not stand to union workers who feared for their benefits, protested at the automaker’s bankruptcy hear.
Per the Detroit News:
The protestors, along with a parade of union workers chanting “Save our benefits,” added drama at the start of a historic day for GM, which is trying to emerge from bankruptcy court as a new, largely debt-free company.
“GM is trying to weasel out of its obligations,” said Missouri resident Terry Cole, 53, who sued after a fiery accident involving his Cadillac Escalade two years ago left the wheelchair-bound man with third-degree burns. He sued, but the lawsuit was put on hold after GM filed Chapter 11 bankruptcy June 1.
The court could rule that GM could sell its best assets to a government-owned “new” General Motors. Such an action would leave those suing for damages on product liability out in the cold. And though GM has said that it will cover future liability claims, the company could reclassify said claims as “bad assets” which could then be left behind in bankruptcy.
It is believed that the bankruptcy judge will make a ruling this week.
i don’t know about that, sarah. gm — and its new owners, the feds — think the bankruptcy will benefit it.
happy fourth of july!
This is a complicated and messy situation to say the least. I am glad not to have to make that ruling, it effects so many and there is no way either decision will benefit all involved.:(