General Motors Co. has agreed to pay $50 million to end long-running litigation over a secretive deal that was struck on the eve of the automaker's 2009 bankruptcy that critics said favored hedge funds, Reuters reported yesterday. The agreement ends complex litigation in which hedge funds affiliated with John Paulson and Paul Singer's Elliott Management agreed to reduce the amount they said they were owed in the bankruptcy of "Old GM." The agreement was reached on Friday. GM had warned the litigation could put it on the hook for $918 million. That threat was removed by the settlement, which still needs to be approved by a bankruptcy court at a hearing scheduled for Oct. 21.
