Texas Attorney Generals Challenges GM Bankruptcy Plan

According to an article in the Dallas Morning News, Texas Attorney General Greg Abbott is challenging post-bankruptcy plans GM has for its car dealerships. Abbott says he objects to GM bankruptcy plans for its dealerships because the plans violate Texas laws regulating dealer competition.

The article said:

Abbott said his concerns relate to GM’s proposed dealership agreements, which dealers must sign to keep selling GM cars. He contends the new agreements avoid Texas franchise laws, limit dealers’ ability to sell other types of cars, overrule current laws on where dealers can be located and limit warranty claims under current Texas law.

The Attorney General’s objections will be heard at a bankruptcy hearing on June 30th. Abbott’s objection will only be the latest in a long line of objections designed to stop certain aspects of the GM bankruptcy. The bankrupt automaker hopes to emerge from bankruptcy within 30 – 90 days, which may be a bit ambitious considering the vastness of this company and complexity of their bankruptcy case.

By | 2017-12-13T01:57:04+00:00 June 15th, 2009|High-Profile Bankruptcies|Comments Off on Texas Attorney Generals Challenges GM Bankruptcy Plan