GM car crash victims oppose asset sale plan
After GM filed for bankruptcy, they went to court to be granted permission to sell their assets as a whole to a new company. U.S. Judge Robert Gerber approved of GM’s plan saying that it would benefit everyone involved.
While many were in favor of this decision, many were not. Those who were injured through faulty GM cars have appealed Gerber’s decision to the U.S. District Court in New York because the GM plan would free the “new” GM from liability for people injured by a defective GM product before June 1.
If the appeal isn’t submitted by noon Thursday, GM’s plan will go into full effect. The government is also backing Gerber’s decision as well as the Treasury who is offering to pay $50 billion to help the “new” GM if the sale goes through Friday. This makes the appeal even more difficult. However, the people against GM’s plan are determined.
Robert Dinnigan’s ten year old daughter is now paralyzed from the neck down due to a car accident in a GM car. If GM’s plan goes through, any chance of having GM be liable is gone. Other people like Dinnigan are pushing hard for their appeal to be heard. Some such as Davide Neier, a New York-based bankruptcy lawyer thinks a compromise would be the best answer. While he believes that the court will not block the GM sale, he thinks it is possible that the court could determine the amount of consumer liability the “new” GM should be responsible. That way, GM can start over, but those hurt by “old” GM will not be left completely out to dry.