Old GM, government, agreed to cleanup deal

WASHINGTON, Oct. 20 (UPI) -- The U.S. government and the dregs of General Motors that remain in bankruptcy court agreed to create a $773 million cleanup fund for former GM properties.

As it emerged from bankruptcy last summer, General Motors kept the viable parts of the company but walked away from 89 company properties in 14 states, two-thirds of which are known to be environmentally contaminated, The Detroit News reported Wednesday.

The portion of the company left in bankruptcy was named the Motors Liquidation Corp. The federal government and that company struck the deal, which will be filed in bankruptcy court in New York Wednesday.

A White House information sheet on the deal said, "This kind of environmental trust is unprecedented in size, speed of settlement, and level of local involvement."

The trust fund provides $431 million in aid to states for cleanup costs and $68 million for unforeseen cleanup issues. Motors Liquidation will be credited $12 million for cleanup efforts approved by the government. An additional $262 million was set aside for administrative costs, including taxes owed on the properties, demolition costs and other fees.

The money for the trust fund is to come from the Treasury Department's automotive industry bailout funding.