(Updates with settlement details in second paragraph.)
Jan. 31 (Bloomberg) -- General Motors Corp. agreed to pay as much as $23.8 million to settle liability for environmental cleanup costs in New Jersey, Maryland and Missouri, the U.S. said.
The agreement resolves Detroit-based GM’s pre-bankruptcy liability for U.S. claims filed under the federal Superfund statute, according to a statement today by the office of U.S. Attorney Preet Bharara in Manhattan. Under the settlement, the U.S. Environmental Protection Agency will receive allowed claims of $20.9 million in GM’s bankruptcy proceeding, plus $2.89 million of cleanup work at the sites.
GM, which filed for bankruptcy in June 2009, sold assets to a new company that went public as General Motors Co. The allowed bankruptcy claim will be paid in stock and warrants of “New GM.” The cash value of the allowed claim probably will be less than $20.9 million, the U.S. said.
The three polluted sites covered by the agreement include the Diamond Alkali Superfund Site, which comprises parts of the Passaic and Hackensack Rivers, Newark Bay, the Arthur Kill and the Kill Van Kull in New Jersey. Also covered are the Kane & Lombard Superfund Site in Baltimore County, Maryland, and the Hayford Bridge Superfund Site in St. Charles, Missouri.
The case is In re Motors Liquidation Co., 09-50026, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
--Editors: Stephen Farr, Glenn Holdcraft
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