Proposed settlement may net $25 million for environmental cleanup

The proposed settlement filed today in the bankruptcy case involving former General Motors sites could provide nearly $25 million for cleanup of eight Indiana sites with ties to the automaker.

Indiana and 13 other states, along with the U.S. Environmental Protection Agency, filed the proposed settlement of the bankruptcy case with Motors Liquidation Corporation, which used to be called General Motors. When the company filed for Chapter 11 reorganization last year, a new entity – General Motors LLC – was created and purchased many of GM’s auto-making facilities and the name “General Motors.” The old GM was renamed in the process and agreed to use bankruptcy proceedings to remediate or liquidate 89 remaining MLC-owned manufacturing sites that weren’t purchased by the new GM.

The settlement totals nearly $773 million and includes provisions so that the states can oversee and monitor environmental cleanup of the sites by the court-appointed trustee and redevelopment managers, and implement any changes if needed. Cleanup will allow for redevelopment of the old sites for future manufacturers or businesses.

The Indiana sites are in Anderson, Indianapolis, Kokomo, and Muncie.

Now there will be a 3-day public comment period after which the court can accept the agreement. The suit is in U.S. Bankruptcy Court for the Southern District of New York.