Personal Injury Law

GM?s Estate May Face Billions of Dollars in Asbestos Claims, Creditors Say

By asbestoshub

Quoted from http://www.bloomberg.com/news/2010-08-09/gm-s-estate-may-face-billions-in-asbestos-claims-creditors-committee-says.html

GM’s Estate May Face Billions of Dollars in Asbestos Claims, Creditors Say

By Tiffany Kary - Aug 9, 2010 6:09 PM ET

Creditors of General Motors Corp.?s bankruptcy estate won permission to seek data from new General Motors and other parties to estimate what could be billions of dollars in asbestos claims.

U.S. Bankruptcy Judge Robert Gerber in New York today granted permission to unsecured creditors to request documents, after they agreed to keep sensitive information confidential.

?This isn?t like the formula for Coke or nuclear launch codes,? Gerber said, after taking hours of testimony about the risks that the information could be misused if disclosed.

Motors Liquidation Co., the remains of General Motors still in bankruptcy, plans to create a trust, allowing it to exit bankruptcy with some funds set aside to pay future tort claims. While the estate recorded an estimate of $648 million for asbestos liability, a committee of creditors said in a court filing the estate may face claims for five to 10 times as much.

Pinning down the liabilities of GM?s bankrupt remains is key to exiting bankruptcy. In May, Gerber extended the bankrupt estate?s exclusive control over its liquidation until this fall, citing the need to resolve asbestos and environmental liabilities.

 

Brake linings used in Old GM?s automobiles incorporated small amounts of encapsulated asbestos, creditors said in court documents. Under Gerber?s order, the creditors can demand documents from trusts that are processing asbestos claims on behalf of other bankrupt companies.

[Article continues at original source]

Full post as published by Asbestos HUB on August 11, 2010 (boomark / email).