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Old 12-06-2012, 03:40 PM
 
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Possibly, it could come at any moment according to the article. This is a serious situation for GM for it could go ahead and force them into the original bankruptcy that was planned for them. I don't remember what the specifics were on why GM needed to be bailed out but whatever it was might now backfire on them if the Judge rules in favor of the Plaintiffs.



NY judge ruling soon on shady aspects of GM bailout | Washington Free Beacon

At issue is a backroom deal hatched by GM to fulfill the Obama administration’s demand for a quick bankruptcy, draining the automaker of nearly all of its cash on hand and leaving it in worse shape than it was when it collapsed in 2009.

One condition of GM’s bailout was to shore up its overseas subsidiaries. On the eve of entering bankruptcy, the company cut a $367 million “lock-up agreement” with several major hedge funds to prevent GM Canada from failing. The agreement ensured that GM could spin-off its liabilities to “old GM,” while using a multi-billion dollar bailout to create a new company.

All of that could be reversed if bankruptcy Judge Robert Gerber reopens the process and rules in favor of old GM trustees, who are suing the hedge funds at the center of the lockout agreement

If Gerber takes that course the company could be forced to return the $30 billion taxpayer bailout that it received through the course of bankruptcy, on top of the new liabilities.
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