Personal Injury Law

Don?t Forget Asbestos Claimants in GM Bankruptcy

By asbestoshub

Asbestos claimants asked for an official committee in the General Motors bankruptcy case, saying the government’s plan to sell the automaker may be unconstitutional since they?ve been left out of negotiations.

The plan is to sell GM’s best assets to a new company. So where would that leave future asbestos claimants? Probably in the dust.

The sale of Chrysler to a new company owned 20 percent by Fiat SpA is being fought by a group of creditors including asbestos claimants. With good reason, apparently. GM’s liability for asbestos claims was $648 million in 2008 and $637 million in 2007, according to regulatory filings.

The U.S. Trustee appointed a committee of GM?s unsecured creditors that included two people suing GM for asbestos exposure and product liability, lawyers said. Only two?

The automaker filed Chapter 11 on June 1, 2009 after failing to reorganize out of court. Under U.S. bankruptcy law, companies with asbestos-related liabilities can channel legal claims into a trust. Lawyers? bills and other costs of official committees in bankruptcy cases are typically paid by the company.

Full post as published by Asbestos HUB on June 24, 2009 (boomark / email).