A special trust called RACER was created last year to clean up 89 contaminated sites left behind by the old General Motors in 14 states. According to a report in the Detroit Free Press, GM was meant to provide $625.2 million (an earlier report in the Detroit News indicated $773 million) to pay for cleaning, and did so with with $49.9 million in cash and the balance in Treasury Bonds.
Those Treasury Bonds should have been worth $575.3 million, but a lawyer for the RACER trust says they were only worth $561.8 million when they were remitted to the trust. That's a $13.5 million gap that the trust would like filled, and it is asking the judge to compel Motors Liquidation (old GM) to hand over the money, or to take that money from remaining Motors Liquidation assets and place it in escrow by December 11.

The bonds have become more valuable since they were given to the trust, but the trust's lawyers maintain that current value has no bearing on the amount they were due as stated in the judge's ruling. Motors Liquidation is trying to dissolve by December 15, and at this point it isn't clear if it even has the $13.5 million, or the inclination to pay.


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    • 1 Second Ago
  • 9 Comments
      johnb
      • 3 Years Ago
      Well at least the lawyers are making money out of this scam. That's cool.
      • 3 Years Ago
      [blocked]
      dukeisduke
      • 3 Years Ago
      The UAW got theirs, while the creditors got screwed.
        harbour
        • 3 Years Ago
        @dukeisduke
        Remember the UAW is inviolate, being a part of the Great O's boys.
      DarwinianReject
      • 3 Years Ago
      Gee, I wish I could unload all my past failures, bad assets, and debt onto some fictional entity called "Old DarwinianReject" that I bear no responsibility for.
        montoym
        • 3 Years Ago
        @DarwinianReject
        You can, it's called filing bankruptcy. Just like GM did. Only it's a personal bankruptcy as opposed to a business one. Not sure how serious you were being, but it is basically the same thing. Same idea anyhow.
      stclair5211
      • 3 Years Ago
      They screwed creditors out of 169 billion so get in line.
      JIM J
      • 3 Years Ago
      First the union takes the Preferred Stock monies, shorting the stock holders. The Preferred Stock holders are the owners of the physical assets of the company and are to be paid FIRST before all others, including the union. That little move undermines the concept of the stock market and the implications are far reaching...for everyone (if you don't own stock directly, think about your pension plan). Next they play the shell game with the taxpayer's money IOT state they've paid their debt. Then they deny warranty claim repairs to vehicles built prior to bankruptcy (Malibu's rear suspension). Now this. YCMTSU. And, no, they all don't do this. ...and this company wants our support. ...and the gov't says it's too big to fail - is there ANY intelligent life in D.C. Good friend's brother - a hard core GM man his entire working career, was 90 days away from retirement from GM when they declared bankruptcy. His retirement nest egg went from $750K to $15K. He'll be working until he's 90. BTW, he just bought a new Ford.