Bressler Comments on the GM Bankruptcy Case and His Defense of Injured IndividualsOn July 6, 2009 by Schnader in News
Barry E. Bressler, chair of Schnader’s Creditors’ Rights Real Estate Practice, was quoted in several articles that covered the approval of the sale of General Motors’ assets to a U.S. Treasury-funded buyer. U.S. Bankruptcy Judge Robert Gerber in New York issued his ruling on July 5, saying the proposed sale was the only option available to the automaker. Mr. Bressler, representing more than 300 tort claimants with approximately $1.25 billion in claims against GM, said Judge Gerber’s ruling “was not unexpected.” Mr. Bressler has asked the U.S. Supreme Court to review the liability issues. Once the sale closes, is is likely that the U.S. government would get 60-percent of the new GM in return for $50 billion in bailout loans, a United Auto Worker retiree trust would get a 17.5-percent stake, and two Canadian government entities would get an 11.7-percent equity share for their loans. The old GM would get 10-percent of the equity, plus warrants, to distribute to bondholders and unsecured creditors. Mr. Bressler explained that the estimated recovery on unsecured claims range from 10 cents to 20 cents on the dollar. He said that his “economically fragile class” of clients may have to wait years for that recovery and would be under pressure to liquidate any stock and warrants they receive to cover medical bills. Stories ran in Business Week, The Detriot News, Bloomberg News, and the Kansas City Star.