U.S. enters $11.5 million settlement with General Motors over natural resource damage

U.S. enters $11.5 million settlement with General Motors over natural resource damage

2011-04-02 06:32:36 GMT+7 (ICT)

NEW YORK (BNO NEWS) -- Prosecutors on Monday announced that the United States entered a $11.5 million settlement agreement with Motors Liquidation Company, formerly known as General Motors Corporation ('Old GM') natural resource damage at five contaminated sites.

According to Preet Bharara, U.S. Attorney for the Southern District of New York, the settlement agreement concerns environmental liabilities for injuries to natural and cultural resources under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA).

The U.S. government will received allowed general unsecured claims collectively exceeding $11.5 million for the restoration of wildlife, habitat, and other natural resources managed by state and tribal governments.

The offenses took place at five sites: two sites contaminated with hazardous waste in New York and Indiana and an additional three sites for past assessment costs in New Jersey.

The amount will be paid in stocks and warrants of the General Motors Corporation ('New GM'). In June 2009, 'Old GM' filed Chapter 11 petitions in the U.S. Bankruptcy Court for the Southern District of New York.

That same day 'Old GM' and three wholly-owned subsidiaries filed for bankruptcy, the company also filed a motion to sell substantially all of its assets to a newly formed corporation, now known as General Motors Company ('New GM').

At that time, the company was the second-largest automotive manufacturer in the world. On March 7, the U.S. and Old GM entered a $50.6 million settlement agreement over environmental liabilities.

These agreements are part of a series of settlements of GM's environmental liabilities that have recovered more than $800 million for cleanup of contaminated sites nationwide.

In October 2010, the United States entered into a $773 million settlement agreement with 'Old GM' to resolve its liabilities at 89 sites. In December 2010, the U.S. entered into six settlements totaling $25 million with the company to solve environmental liabilities at six sites.

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