GM again faces potential $1 billion payout over defective ignition switches
By Mike Spector
'Old GM' trust discussing possible deal with plaintiffs
General Motors Co. again faces the prospect of a potential $1 billion stock payout to address claims stemming from the auto giant's ignition switch crisis after a trust for the company's bankruptcy estate renewed discussions with plaintiffs about a settlement.
The trust, tasked with compensating creditors of the "old GM," is discussing a possible deal that previously fell apart, lawyers said during a Thursday hearing in a Manhattan federal bankruptcy court. Old GM is the term often used to describe the assets GM (GM) left behind in 2009 as part of its $50 billion government rescue and bankruptcy restructuring.
A deal, which isn't guaranteed, could have GM paying the trust $1 billion in stock to address claims from accident victims and customers seeking recompense for declining vehicle values arising from faulty ignition switches.
GM in 2014 recalled roughly 2.6 million older cars with ignition switches that risked slipping from the run position, leading to stalled engines and disabled air bags in crashes. GM settled a criminal case and paid billions of dollars in settlements and penalties for mishandling the defect, now linked to 124 deaths.
An expanded version of this report appears on WSJ.com (https://www.wsj.com/articles/gm-faces-renewed-prospect-of-1-billion-payout-over-ignition-safety-1520547312?mod=mktw).
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-Mike Spector ; 415-439-6400; AskNewswires@dowjones.com
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03-08-18 1737ETCopyright (c) 2018 Dow Jones & Company, Inc.