GM Bankruptcy May Thwart Lawsuits

[RamboLiberal]

Source: CBS News/AP

Bondholders, auto workers and consumers aren't the only ones concerned with General Motors' potential bankruptcy. The roughly 1,200 Americans suing the automaker have a stake too.

One of those claimants is Robert Dinnigan, a New York iron worker whose daughter Amanda was left paralyzed after an allegedly faulty seatbelt failed to protect her in an accident, according to a Daily News report Tuesday.

Dinnigan said Amanda's medical bills total around $500,000 a year and he's concerned that if GM enters Chapter 11, he'd be low on the list of creditors waiting to get a piece of the company.

Faced with the same prospect, many other claimants are pushing to settle quickly, even though there would be no guarantees on collecting the full amount should GM enter bankruptcy.


Read more: http://www.cbsnews.com/stories/2009/05/26/business/main5040548.shtml?tag=topHome;topStories

[WriteDown]

1. This is an epic fail...

no matter what angle you look at it.

[Lone_Star_Dem]

2. I was wondering about this angle of things

Locally we've had a developer go bankrupt leaving contractors holding the bag for tens of millions of dollars in services which they'd filed suit in an attempt to at least partial payment. They've basically been told their SOL as the property's been sold in a foreclosure sale and was purchased by a relative of the of the original corp. for what the note was and no more. So, all the money went to the lender and no money left over for the contractors. Too bad, too sad to be the little guy.

That got me wondering what was going to happen to those who had lawsuits filed against GM and Chrysler and if they'd be in a similar boat. It appears they are. :(