U.S. announces $773M settlement with GM to resolve environmental liabilities

October 20th, 2010 - 11:28 pm ICT by BNO News  

WASHINGTON, D.C. (BNO NEWS) — The United States on Wednesday announced a $773M settlement with Motors Liquidation Co, formerly known as General Motors Corp., to resolve environmental liabilities at several of its facilities.

Motors Liquidation, or the old GM, will pay more than $641.4 million in cash, and will contribute additional non-cash assets (with an estimated value of $120 million), for the cleanup and administration of 89 properties and sites, 59 of which are known to have been contaminated with hazardous substances or waste.

In addition, Old GM has spent approximately $11.5 million towards the cleanup of the properties with known contamination during the pendency of the bankruptcy proceeding.

The settlement addresses Old GM’s environmental liabilities at the 89 properties still owned by Old GM in Delaware, Illinois, Indiana, Kansas, Louisiana, Massachusetts, Michigan, Missouri, New Jersey, New York, Ohio, Pennsylvania, Virginia, and Wisconsin.

More than half of the cleanup funds to be paid to the environmental response trust will be provided for the environmental remediation of sites in New York and Michigan.

Old GM and three wholly-owned subsidiaries filed Chapter 11 petitions in the U.S. Bankruptcy Court for the Southern District of New York on June 2009. Old GM also filed a motion to sell substantially all of its assets to a newly formed corporation, now known as General Motors Company, or new GM, which was approved by the Bankruptcy Court in July 2009.

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