JPMorgan Chase & Co. scored a partial victory yesterday in a long-running dispute over the repayment of a $1.5 billion loan it made to General Motors’ bankrupt predecessor, known as ‘Old GM,’ Reuters reported. Bankruptcy Judge <b>Martin Glenn</b> sided with the bank against Old GM’s unsecured creditors, who have been trying to claw back the money, finding that most assets securing the loan, like robots and conveyor belts, were “fixtures” covered by a JPMorgan lien. Unsecured creditors had hoped to convince Judge Glenn the assets were not covered by the lien, which would have cleared the way for them to try to recoup money that Old GM repaid to the bank. JPMorgan said that it was reviewing the ruling. A lawyer for unsecured creditors declined to comment. In addition to determining if the assets were fixtures, Judge Glenn was also asked to determine the value of the equipment. The judge rejected the bank’s proposed valuation, although he also rejected the valuation method proposed by unsecured creditors.
