S.D.N.Y. to Hear Multiple Motions Next Week in GM Bankruptcy
As I have discussed recently on our firm website, the U.S. Bankruptcy Court for the Southern District of New York has made a commendable effort in making information regarding GM’s recent Chapter 11 bankruptcy filing readily available via the Internet. Obtaining accurate information in a timely manner is vitally important to anyone involved in a bankruptcy, and this is especially important in the case of GM where so many have so much at stake. Towards this end, the court has created a General Motors page which contains two important links. The first instructs ‘[c]ustomers, suppliers, dealers, retirees, investors and other GM constituents with specific questions’ to review the Frequently Asked Questions (FAQs) posted at http://www.gm.com/restructuring/. The second link, described by the Court as providing ‘[c]laims information and court documents …. from the claims agent,’ directs the user to http://www.gmcourtdocs.com. Today a link from the ‘courtdocs’ page is reporting that several motions are scheduled to be heard by Hon. Robert E.Gerber next week. In the afternoon of Tuesday June 23, the court is scheduled to hear a ‘Motion to Appoint Official Committee of Family & Dissident Bondholders.’ Starting at 9:00 am on Thursday June 25, the court is scheduled to hear more than a dozen motions, including requests to ‘Approve DIP Financing,’ for ‘Authority to Use Cash Collateral and Granting Adequate Protection to Revolver and Term Loan Secured Parties,’ for ‘Authority to Continue to Use Cash Management System,’ ‘or ‘Authority to Pay Prepetition Claims of Essential Suppliers and Vendors,’ for ‘Authority to Pay Prepetition Obligations to Foreign Creditors,’ to impose ‘Stock Trading Restrictions (NOL Motion),’ to approve ‘Adequate Assurance to Utility Companies,’ ‘for Authority to Exercise Put Rights,’ ‘for Additional Time to File Reports of Financial Information.’ On Thursday the court will also hear the Debtors’ ‘Applications to Retain Certain Professionals,’ the Application of General Motors Retiree Association ‘to Appoint a Retiree Committee,’ a motion brought ‘by the AdHoc Committee to Appoint Official Committee of Tort Claimants,’ and a motion ‘for Appointment of a Legal Representative and Official Committee of Asbestos Personal Injury Claimants.’The sheer number of motions should not be viewed as an indication that GM’s emergence from bankruptcy will be delayed or impeded, as was feared in the Chrysler bankruptcy when the Indiana pensioners’ challenge to the Fiat sale was appealed to the U.S. Supreme Court. According to the ‘restructuring’ page, GM remains optimistic that it will emerge from Chapter 11 sometime in August or September with a ‘New GM’ built around its ‘four core’ brands, Buick, Chevrolet, Cadillac and GMC.-Drew Broaddus
