Victims that lost money as a result of General Motors Co.'s ignition-switch problem could be forced to battle old-GM creditors for the remains of a trust that contains just more than $1 billion, according to a new court filing, if the victims are unsuccessful in gaining bankruptcy-court permission to sue the much richer, current General Motors company, Dow Jones Daily Bankruptcy Review reported today. The trust, which is all that remains financially of the prebankruptcy General Motors business, set aside as disputed creditor claims are resolved, is likely the only place these victims can turn for compensation if they can't sue General Motors. (Subscription required.)
http://bankruptcynews.dowjones.com/Article?an=DJFDBR0020140527ea5rn8bqh…
In related news, General Motors Co. is facing growing pressure over its position that 13 people have died in accidents related to defective ignition switches installed in 2.6 million small cars, the Wall Street Journal reported today. "We believe it's likely that more than 13 lives were lost," said David Friedman, acting administrator of the National Highway Traffic Safety Administration. "GM knew about the safety defect, but did not act to protect Americans from that defect until this year." GM yesterday didn't directly address the dispute over the number of fatalities. On Friday, a GM spokesman said only 13 fatalities may be related to the defect. (Subscription required.)
http://online.wsj.com/news/articles/SB100014240527023048119045795881022…