‘Old GM’ to reportedly set aside $773M for environmental cleanup plan
Filed under: Government/Legal, GM
The U.S. Government and old General Motors have reached an agreement that may make some of the company’s former properties more appetizing to buyers. The estate of the bankrupt GM has agreed to set up a $773 million trust dedicated to cleaning up 89 of the company’s former properties. Around two-thirds of those are known to have been contaminated by hazardous waste. The deal was reached with the approval of 14 states and a tribal government, though the federal government and some states will still accept public comment on the deal for up to 30 days. Even so, sale of the properties is expected to move forward.
With GM agreeing to pay for any environmental cleanup that may arise in the future, the company’s former properties will be all the more enticing to investors. Even with GM’s substantial investment in the project, The Detroit News says that the bulk of environmental cleanup will likely remain a government-funded operation with Michigan alone receiving $159 million from the feds to help clean up 50 sites.
Of the $773 million GM is setting aside for the project, $431 million will head straight to states to be used for immediate clean up. Another $68 million gets set aside for any future cleanup that may arise while $12 million gets kicked back to old GM for current cleanup activities going on right now. Meanwhile, $262 million of the total fund goes straight to administrative costs, including property taxes and any demolition that may be required.
[Source: The Detroit News]
‘Old GM’ to reportedly set aside $773M for environmental cleanup plan originally appeared on Autoblog on Fri, 22 Oct 2010 10:01:00 EST. Please see our terms for use of feeds.
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