Motors Liquidation Claims

In 2009, GMRA members who received “Proof of Claim” letters from The Garden City Group as part of the GM bankruptcy requested recommendations from GMRA for filing individual claims for losses.

At that time, GMRA informed members that GMRA could not give legal or financial advice but suggested general guidelines for members to consider in measuring their individual losses if they decided to file a claim. GMRA did not retain counsel for the purpose of representing the claimants nor has GMRA identified an attorney to represent claimants as a group.

Again, GMRA cannot give legal advice, but we can share information and understanding that has been provided to us by attorneys, including GMRA General Counsel Sheldon Miller. Whether you are a claimant or not, we remind you that you should always consider and feel free to consult with an attorney for legal advice.

GMRA members have contacted GMRA with questions concerning the notices recently sent by The Garden City Group or MLC Counsel Weil Gotshal concerning the bankruptcy claims.

Following are key elements of the bankruptcy mailings:

1. Notice of (I) approval of disclosure statement; (II) establishment of record date; (III) hearing on confirmation of the plan and procedures for objecting to confirmation of the plan; and (IV) procedures and deadline for voting on the plan
1. Confirmation hearing is March 3, 2011
2. Only creditors who hold claims on Dec. 7, 2010, are entitled to vote
3. Voting deadline is Feb. 11, 2011
4. Voting excludes those holders of claims who will receive no distribution under plan
5. Objections to confirmation are due Feb. 11, 2011
2. Notice of Deadlines for Filing Administrative Proofs of Claims
3. The Official Committee of Unsecured Creditors notice recommending a vote FOR the plan
4. Notice of Debtors’ Omnibus Objections to Claims

On 1, all of the above points are procedural in the bankruptcy.

On 2, employee/retiree compensation or welfare benefits are not ‘administrative’ claims. The deadline for filing claims for employee/retiree compensation or welfare benefits was Nov. 30, 2009.

On 3, an attorney at the Official Committee of Unsecured Creditors tells us the Committee is recommending acceptance of the plan on the belief that it is the best plan that unsecured creditors can expect.

GMRA cannot give legal advice. We have been told in part what a Yes or No vote could mean.

A YES vote = would allow the bankruptcy plan to proceed
A NO vote = may delay the bankruptcy proceeding

Note: Welfare benefits claims may be expunged; in which case votes would be nullified. Life insurance reduction claims may be an exception. [See section below on “Reduced Life Insurance Benefits]

On 4, the omnibus objections to dismiss or expunge claims for certain compensation and welfare benefits are based on the same reasoning as previous objections (simplified): a) Old GM did not assume responsibility for these benefits; b) New GM assumed responsibility for the benefits; and c) both Old and New retain the right to amend or terminate (including reference to Sprague v. GM case).

It is expected that all of the claims for welfare benefits will continue to be objected to with the possible exception of life insurance reduction claims. [See section below on “Reduced Life Insurance Benefits].

Numerous GMRA members reported their responses to objections that were submitted by email were accepted in that format. We also have a report of a GMRA member who filed a response to an objection following the court rules. We can send you a description of the process that was used (the cost to respond using this process is approximately $70), but it appears email is acceptable.

At this point, we are unaware of any claimants who have opposed the objections and have prevailed or have settled their claims.

Reduced Life Insurance Benefits (retirees with a GM or MetLife ‘guarantee’ letter)

Recently we notified GMRA members that, related to claims for reduced life insurance benefits, GMRA has been contacted by a number of GM retirees concerning letters they are holding from GM or MetLife stating something to this effect:

"This amount of continuing life insurance will remain in effect for the rest of your life."

GMRA General Counsel Sheldon Miller, a leading trial attorney, has offered to review these letters at no charge. He will then make a determination as to possible recourse and will advise you accordingly. You are not obligated to take any action at that point. Being a claimant for reduced life insurance benefits may be a factor in recourse.

If you have such a letter, and wish to pursue legal action, you can send a copy by email or U.S. mail with your contact information (name, address, phone and email) to:

Law Office of Sheldon L. Miller, P.C.
31731 Northwestern Hwy, Suite 280W
Farmington Hills, Michigan 48334
Phone 248-538-3400
Fax 248-538-5280
Email: [email protected]

Please also indicate whether you filed a claim for reduced life insurance and include a copy of your proof of claim, if possible.

Feel free to contact Mr. Miller directly if you would like to discuss further. Here is a link to the Law Office of Sheldon Miller, if you are interested: http://www.mipersonalinjury.com/
GMRA cannot give legal advice but recommends that you consider following up quickly if you have such a letter.

As background, Mr. Miller is representing a group of almost 500 Chrysler executives (including Lee Iacocca) in litigation concerning their pension loss.

MLC’s legal counsel has informed us that it is available to discuss both the MLC claims process as well as the insurance letters, Please note that it is a conflict for MLC’s legal counsel to represent anyone else’s interests in this case other than MLC. Claimants who deal directly with Weil Gotshal attorneys are considered to be representing themselves. Claimants can contact the following MLC attorney:

David N. Griffiths, Esq.
Weil, Gotshal & Manges LLP
767 Fifth Avenue
New York, NY 10153
[email protected]
+1 212 310 8729 Direct
+1 212 310 8007 Fax