GM Settles Pollution|Case for $39.2 Million

MANHATTAN (CN) - Motors Liquidation Co., or "Old General Motors," will pay $39.2 million to settle claims it polluted the 185,000-acre Onandaga Lake Superfund site, the U.S. Attorney's Office said Tuesday.

"Under the terms of the agreement, [the U.S.] E.P.A. will receive allowed bankruptcy claims collectively exceeding $39.2 million exceeding $39.2 million," prosecutors said in a statement. These allowed claims will be paid in part in stock and warrants of General Motors Corporation ('New GM') in an amount to be determined through the bankruptcy. The United States anticipates that, as a function of bankruptcy law, the New GM stock and warrants received by EPA will have a cash value of less than the face amount of EPA's allowed claim. In addition to this allowed claim of $39.2 million, the Stateof New York will receive an allowed general unsecured claim of $859,257."