US Sens Reid, Durbin Air Concerns About GM Stakeholders
26 Juni 2009 - 12:02AM
Dow Jones News
The two top-ranking Democrats in the U.S. Senate pressed Obama
administration officials Thursday on contentious aspects of the
restructuring of General Motors Corp. (GMGMQ), including issues
facing auto dealers.
Senate Majority Leader Harry Reid, D-Nev., and Majority Whip
Richard Durbin, D-Ill., sent a letter to Obama auto adviser Steven
Rattner expressing "concerns regarding the treatment of certain
stakeholders in the restructuring process." The senators asked for
"clarification" on issues facing dealers, GM workers and
consumers.
The senators ask whether the proposed reorganization for GM will
"indemnify" the company's dealers from potential liability claims
and legal fees associated with claims based on variations in state
laws.
The senators point out that GM plans to open dealerships in
territories previously served by dealers that have been told to
close. They ask how the auto task force will help rejected dealers
reopen dealerships in those areas.
The senators ask about the process for resolving pending and
future worker compensation claims against GM before and after
restructuring.
They ask about the process for recovery for those who have been
injured by defective GM products and who have pending claims
against GM.
They inquire how the Treasury Department's auto task force will
ensure GM satisfies pension and healthcare obligations for current
and future retirees.
"Why under the restructuring agreement are the claims of certain
union members being treated differently than the workers and
retirees of other unions?" they ask.
A Treasury Department spokeswoman declined to comment.
-By Josh Mitchell, Dow Jones Newswires; 202-862-6637;
joshua.mitchell@dowjones.com