GM may face $918-million loss due to suit stemming from bankruptcy

General Motors may see a loss of $918 million should a bankruptcy judge rule certain hedge funds were favored over other investors during the automaker's 2009 restructuring. A trust representing a number of unsecured creditors has sued to undo a lock-up agreement that saw hedge funds receive around $367 million while other creditors were left to recover a slim fraction of their original investments. The creditors claim the agreement was unfair and that it took place after after the bankruptcy filing. That means the deal would have been subject to scrutiny by bankruptcy courts.

Autoblog , GM may face $918-million loss due to suit stemming from bankruptcy, GM may face $918-million loss due to suit stemming from bankruptcy