“Legal Update – “Second Circuit Pumps Brakes on General Motors and “Free and Clear” Asset Sales” – By Jason W. Bank, Chair of Kerr Russell’s Bankruptcy and Restructuring Practice.

Seven years after speeding its way through a bankruptcy court approved transformation to a new company, General Motors faces a major roadblock. The Second Circuit Court of Appeals has ruled that vehicle owners may pursue GM for successor liability for vehicle defect claims that arose prior to its bankruptcy filing.