JPMorgan Chase & Co. asked an appeals to reconsider a negative ruling on its $1.5 billion loan to General Motors Co.’s bankrupt predecessor, saying that the decision caused a “seismic” shift in the law, Bloomberg News reported yesterday. The bank’s lawyers accidentally gave up its rights to security for the loan and JPMorgan says that it wants its collateral back because the lawyers weren’t authorized to act on the deal. The appeals court last month sided with GM’s creditors. “This case is about a clerical error that has triggered a seismic shift in agency law,” JPMorgan said in court papers in the U.S. appeals court in Manhattan. The biggest U.S. bank also accused the court of causing “a potentially staggering loss on the basis of an acknowledged drafting error.” Creditors of GM’s forerunner company are fighting for the collateral securing the loan so they can divide the assets themselves. The ruling upended a 2013 decision by U.S. Bankruptcy Judge Robert Gerber in Manhattan. The old GM, saddled with leftover assets after the automaker’s 2009 bankruptcy and U.S. bailout, has little money to pay creditors. JPMorgan’s collateral might add a small amount, creditors have said.
http://www.bloomberg.com/news/articles/2015-02-05/jpmorgan-seeks-rehear…
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