GM Makes Further Concessions on Liabilities to Smooth Sale Path

General Motors Corp., the largest U.S. automaker, is making last-minute concessions to opponents of its planned asset sale that leave the new company with liabilities it could have erased in bankruptcy.

The Detroit-based company amended the sale agreement to clarify that it will take on some tax and workers’ compensation claims, maintain utility service to plants being left behind and accept future product liability and “lemon law” claims. That should “significantly alleviate” objectors’ concerns, it said.

GM lawyer Harvey Miller said at today’s hearing in New York on the proposed sale before U.S. Bankruptcy Judge Robert Gerber that liability from any accident that occurs after the closing will be assumed by the new company. There hasn’t been any progress with resolving asbestos claims, he said, and those and other tort claims will remain with GM’s bankruptcy estate.

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- Posted: 2009-06-30 12:55:06

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