Former General Motors eyes $625 million asbestos claim settlement

By Lisa Kerner

Charlotte, N.C., Feb. 14 - Motors Liquidation Co. asked the court to approve a stipulation settlement with certain of its subsidiaries, the statutory committee of unsecured creditors, the official committee of unsecured creditors holding asbestos personal injury claims and Dean M. Trafalet, the legal representative for future claimants, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Under the settlement, the debtors' total liability for asbestos personal injury claims (the asbestos trust claim under the plan) shall be fixed in the amount of $625 million.

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

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