NEW YORK, June 28 (UPI) -- The White House and General Motors have resolved liability issues that could have derailed the U.S. automaker's emergence from bankruptcy, documents show.
Documents filed in bankruptcy court late last week indicated a deal has been reached in which a successor company to General Motors would remain liable for claims filed against GM products, even though it would no longer be the same company, The New York Times reported Sunday.
The liability issue had threatened to stall the post-bankruptcy plans for GM after several state attorneys general raised concerns that car buyers who currently have legitimate claims against GM wouldn't be able to litigate them in state courts after the automaker emerges in a new corporate identity, the newspaper said.
"While the sacrifices being made in this process -- by workers, retirees, creditors, dealers, suppliers, communities and individuals injured by GM products -- are painful, there is nothing exceptional about these bankruptcy terms," an unnamed administration official told the Times.
A hearing to approve the agreement reportedly is scheduled Tuesday in federal bankruptcy court in New York.
