General Motors Co. again faces the prospect of a potential $1 billion stock payout to address claims stemming from the auto giant’s ignition-switch crisis after a trust for the company’s bankruptcy estate renewed discussions with plaintiffs about a settlement, the Wall Street Journal reported. The trust, tasked with compensating creditors of the “old GM,” is discussing a possible deal that previously fell apart, lawyers said during hearing yesterday in a Manhattan federal bankruptcy court. Old GM is the term often used to describe the assets GM left behind in 2009 as part of its $50 billion government rescue and bankruptcy restructuring. A deal, which isn’t guaranteed, could have GM paying the trust $1 billion in stock to address claims from accident victims and customers seeking recompense for declining vehicle values arising from faulty ignition switches.
