Bankruptcy seems to be inevitable for the General Motors Corporation (GM). A debt exchange offer from General Motors was rejected by bondholders moving the company closer to bankruptcy that could result in two different countries owning three-quarters of its stock.
Bankruptcy can lead to former employees of General Motors being left without any kind of pension to make sure they are covered in case of personal injury.
Not only that, but our firm’s car accident attorneys in San Diego, we feel it is important to point out that millions of drivers riding in cars produced by General Motors may encounter holding GM financially accountable problems if their cars fail due to defective design or products liability.
Sources say a new overhaul plan would require the U.S. government to lend GM about $30 billion on top of the $19.4 billion already invested. This would give the U.S. government a majority stake in the company. Canada is also prepared to lend about $9 billion for a smaller interest.
Bondholders owed $27 billion were given a deadline of 11:59 p.m. last night to agree to a company offer which would drop their stake in the company to 10 percent. Even though the governments would have a majority stake in the new General Motors, there is no guarantee that people with personal injury from working at GM will not be covered by new pension plans.
There is also no guarantee the governments would take responsibility for GM made cars that cause car accidents leading to personal injury such as whiplash, spinal cord injuries leading to paralysis (i.e. paraplegia and quadriplegia) as well as traumatic brain injuries like concussions.
Our firm’s car accident lawyers in San Diego believe that regardless of a financial situation, companies that are responsible for products that can cause serious personal injury or wrongful death if their products malfunction should be held liable if the products they make cause tragic events like car accidents.
Please feel free to call us now at 1-858-551-2090 or click here for a FREE CONSULTATION with an experienced car accident lawyer. We have a large bilingual staff that can assist you in either English or Spanish.
SENIOR PERSONAL INJURY ATTORNEY & FIRM FOUNDER
Michael Pines is a former insurance company attorney who graduated from the University of California Hastings College of the Law in 1987. While he was an insurance attorney, he learned from behind the scenes how insurance companies work and how they decide how much to pay injured people. Now that he works against insurance companies, Michael’s inside knowledge has resulted in significant benefits to his clients injured in car accidents. Learn more about Michael Pines