Detroit Free Press – A deal that helped General Motors settle financial claims from a group of hedge funds around the time of its historic 2009 bankruptcy could cost the company more than $900 million if a lawsuit in progress now succeeds, a top executive said Thursday.
A trust representing unsecured creditors for the Old GM is contesting a so-called “lockup agreement” in which several hedge funds agreed to accept $367 million to settle $1.3 billion in claims against Old GM, known in U.S. Bankruptcy Court in New York as Motors Liquidation.
