Motors Liquidation seeks approval of proposed $12 million settlement with truck owners

By Lisa Kerner

Charlotte, N.C., July 26 - Motors Liquidation Co. reached a proposed settlement with Boyd Bryan and others in a nationwide class of similarly situated automobile owners, according to a filing with the U.S. Bankruptcy Court for the Southern District of New York.

A hearing is scheduled for Aug. 6.

The lawsuit concerns nationwide class action based on an allegedly defective parking brake found in 1999-2002 GMAC and Chevrolet pickups and/or SUVs.

Under the proposed settlement, the settlement class of about 4 million will have a $12 million allowed general unsecured claim against Motors Liquidation.

The debtors would put $100,000 into an escrow account to defray the cost of administrative expenses.

Motors Liquidation, formerly General Motors Corp., a Detroit-based automaker, filed for bankruptcy on June 1, 2009. The new General Motors Corp. emerged from Chapter 11 on July 10, and Motors Liquidation's Chapter 11 case number is 09-50026.

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