GM, EPA Reach $23.79 Million Agreement On Superfund Cleanup Costs

GM, EPA Reach $23.79 Million Agreement On Superfund Cleanup Costs

NEW YORK - (Mealey's) The liquidation company for bankrupt General Motors Corp. on Jan. 30 reached a $23.79 million settlement with the U.S. Environmental Protection Agency to resolve environmental liabilities related to Superfund sites in three states (In Re:  Motors Liquidation Company f/k/a General Motors Corporation, No. 09-50026, Chapter 11, S.D. N.Y. Bkcy.).

(Settlement agreement.  Document #80-120215-001X.)

GM filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York. 

Environmental Costs 

The EPA filed a claim against GM, alleging that it was liable for the costs the EPA had incurred for cleaning up Superfund sites in New Jersey, Maryland and Missouri. 

The EPA maintained that under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), 42 U.S. Code Sections 9601-9675, it was allowed to recover costs from GM. 

Pursuant to the liquidation plan of GM, the General Motors Liquidation General Unsecured Claim (GUC) Trust was authorized to resolve all remaining claims against GM. 


 The GUC Trust and the EPA reached an agreement under which the EPA's claims will be satisfied with a payment of $20,902,000, plus $2,896,334 to be applied directly to cleanup efforts at the Maryland and Missouri Superfund sites. 

The EPA is represented by Assistant U.S. Attorney Natalie N. Kuehler in the U.S. Attorney's Office in New York and Craig Kaufman of the EPA in Washington, D.C.  The GUC Trust is represented by David A. Vanaskey of the Wilmington Trust Co. in Wilmington, Del., and David R. Berz of Weil, Gotshal & Manges in Washington. 

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