On October 20, 2010, the United States Department of Justice and Motors Liquidation Company, the "Old GM," submitted to the bankruptcy court a settlement agreement pursuant to which Old GM would pay over $640 million in cash and over $20 million in non-cash assets for the remediation of 89 facilities that were not conveyed to the reorganized General Motors, which emerged from bankruptcy earlier this year. Of the 89 facilities that are subject to the agreement, 59 are known to be contaminated with hazardous substances. Under the agreement, Old GM is receiving credit for $11 million that it had previously expended in the clean-up of these sites.
The Old GM will convey the funds and the non-cash assets to a Trust Fund. More than half of the proceeds of the settlement will be used to remediate and rehabilitate facilities located in Michigan and New York. Participants in the negotiations of the agreement included not only the DOJ and Old GM, but also the representatives of 14 states and the St. Regis Mohawk tribe in New York. The bankruptcy court will receive public comments on the agreement for the next 30 days.