Tag Archives: Free and clear

The Second Circuit’s General Motors Decision Defines Limits To “Free And Clear” Sales

Last week, the Second Circuit Court of Appeals reversed a bankruptcy court order barring tort claims for product defects against the purchaser of General Motors’ (“Old GM”) assets.  The purchaser (“New GM”) had purchased Old GM’s assets “free and clear” in Old GM’s 2009 bankruptcy case under section 363 of the Bankruptcy Code.  The Second … Continue Reading

Bankruptcy Judge Rules Ignition Switch Plaintiffs Cannot Un-bake GM’s Cake

As we previewed last week, the U.S. Bankruptcy Court for the Southern District of New York recently handed General Motors (“New GM”) an enormous victory that may end up shielding the company from up to $10 billion in successor liability claims. The court’s ruling also bolsters the power and importance of sale orders entered under … Continue Reading