Wednesday, June 3, 2009

GM Auto Dealerships Seek Special Committee From GM Bankruptcy Trustee

/PRNewswire/ -- On behalf of terminated and soon-to-be-terminated GM auto dealerships, former U.S. Attorney G. Douglas Jones dispatched a letter yesterday to General Motors bankruptcy trustee Diana G. Adams asking that a special committee be established to protect the interests of terminated GM auto dealerships who operate as separate operating entities and have provided hundreds of millions in tax revenues to state and local governments.

"The best way to at least create a seat at the table for the affected dealers and the claims they represent in the bankruptcy is the appointment of a Terminated Dealers Committee," wrote Jones. "The significant interest these dealers have in the orderly bankruptcy process and the interplay of the dealers' rights under both bankruptcy law and applicable state laws is vital. The appointment of such a committee is crucial in these opening days as important decisions concerning the future of General Motors are being reached."

GM announced last month that they intended to slash auto dealerships by 42 percent from 2008 to 2010 levels. Dealerships will be reduced by 2,641 locations, from 6,246 to 3,605.

The proposal came in reaction to auto dealerships being left out of the restructuring. "Unlike many of the major affected players, including the United States government, United Auto Workers, major suppliers, bond holders and multi-million dollar pension funds, these small town dealerships risk having no voice in the General Motors bankruptcy," Jones wrote.

Jones added, "It is important to note that these dealerships are wholly-owned and separate operating entities apart from General Motors. In fact, many of these dealerships are operating companies that have successfully been in existence and turning a profit for years. For example, our client, Abercrombie Chevrolet has been in existence for over 52 years and has been a family owned General Motors dealership operating in Hartselle, Alabama. The Abercrombie family, along with owners and families throughout this country, are being severely impacted by the General Motors bankruptcy."

-----
www.fayettefrontpage.com
Fayette Front Page
www.georgiafrontpage.com
Georgia Front Page
www.politicalpotluck.com
Political News You Can Use

No comments: