GM Chapter 11 Liquidation Order Proposed

MANHATTAN (CN) - The United States filed a proposed Non-Owned Site Settlement Agreement between Motors Liquidation Co. - the former General Motors Corp. - and its creditors, but asked a federal judge not to approve it until it has been published in the Federal Register and a 15-day comment period has elapsed.

GM will pay $50.6 million under the settlement for environmental violations under the Clean Air Act and other laws at 34 sites.

The Environmental Protection Agency will get $36 million in GM stock to settle environmental claims at various contaminated sites and resolve civil penalties at other facilities, plus $10.5 million in bonds and $4.6 million in cash for cleanup work.

In June 2009, Motors Liquidation Company, formerly known as General Motors Corporation, and three wholly owned subsidiaries filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York.

U.S. Bankruptcy Judge Robert Gerber will decide whether to approve the settlement.

This settlement is the eighth in a series of settlements resolving General Motors' environmental debts.

So far, these settlements have totaled over $800 million, including $773 million for violations at 89 sites in October 2010 and $25 million for violations at six sites in December 2010.

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