Ohio AG hopes for speedy GM reorganization

Chris Rizo Jun. 1, 2009, 5:00pm

Richard Cordray (D)

COLUMBUS, Ohio (Legal Newsline)-Ohio Attorney General Richard Cordray on Monday said he is hopeful that General Motors Corp. is able to swiftly reorganize under federal bankruptcy protections.

General Motors, the century-old Detroit-based automaker, filed for federal Chapter 11bankruptcy protection Monday in U.S. Bankruptcy Court for the Southern District of New York.

The Democratic attorney general also said he plans to fight to protect the rights of Ohio consumers as GM reorganizes, just as he did during Chrysler LLC's reorganization.

"General Motors is an iconic American company that is a major Ohio employer, and I join other Ohioans in hoping for a swift and effective restructuring," Cordray said. "That said, my office intends to scrutinize General Motors' bankruptcy proceedings just as we are the bankruptcy of Chrysler."

Cordray said he intends to fight not only for Ohio consumers, but also of auto dealerships and the state's workers' compensation fund.

As Legal Newsline has reported, Cordray has filed three limited objections to the sale of Auburn Hills, Mich.-based Chrysler to Italy's Fiat SpA. Among other things, the attorney general said he wanted assurances the company would continue to protect consumers who buy defective autos.

"As the final details of Chrysler's restructuring plan are settled, we will continue to fight to ensure that New Chrysler respects the commitments of old Chrysler," Cordray said.

From Legal Newsline: Reach staff reporter Chris Rizo at chrisrizo@legalnewsline.com.

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