General Motors, pursuant to its Chapter 11 reorganization, was allowed to sell most of its properties to the new GM, leaving behind unwanted properties that contain environmental liabilities estimated at $530 million. GM has a $1.2 billion bankruptcy wind down budget to cover the clean up of these sites, but many fear that this is not enough, as that money will also be used to pay administrative fees, other claims, liabilities and bankruptcy attorney fees. If there is not enough money left over, the clean up fees will likely fall upon taxpayers.
Chrysler Group LLC had a similar bankruptcy and left behind environmental problems, but these are said to be no where near the scale of GMs contaminated sites. As you may imagine, other manufacturers have gone bankrupt before and left behind contaminated sites, but nothing of this magnitude.
As seen from my earlier blog article, GM was also able to wipe out current and pending product liability claims, and Chrysler was able to wipe out current and pending product liability claims, and any future claims for products manufactured prior to June 10, 2009. Those poor victims will likely fall on government plans such as Medicaid and Medicare, again leaving the taxpayer to foot the bill.
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