General Motors has it will accept all claims made by accident victims after the sale.
The struggling car manufacturer, while agreeing to take on future liabilities, asserted its right to leave behind claims by victims of past accidents, citing bankruptcy law and a decision in the Chrysler LLC case that allows companies to sell assets “free and clear of tort claims and successor liability”.
“To alleviate certain concerns that have been raised on behalf of consumers as to future products-liability claims” the new GM will assume the claims of victims driving GM vehicles “regardless of when the product was purchased,” GM said in a court filing on June 26th.
Under Treasury control, the new entity also will assume all liability under the so-called Lemon Laws “for additional repairs, refunds, partial refunds, or replacement of a defective vehicle, and for regulatory obligations under such laws,” though not for punitive damages, it said.
GM, which filed for bankruptcy on June 1st with $82.3 billion in assets and $172.8 billion in debt, made the statement in an “omnibus” response to objections by bondholders, dealers, tort victims and retirees.
No party among the objectors “seriously suggests” GM shouldn’t go ahead with the sale, the company said.
Bloomberg