NY Judge Set To Rule On Deceitful GM Bailout

Justice could finally prevail for the investors victimized by the shady GM bailout deals made in 2009.  Judge Robert Gerber, the same judge who approved the sale three years ago, is preparing to rule on the lawsuit brought by the old GM trustees.

The judge is ruling on new information that at the 11th hour, in the dark of night, GM cut a slick deal with major hedge funds, effectively draining the company of its cash assets, leaving the investors with a corporate shell of liabilities.  A new company was then created with the $367 million stolen from the investors and Obama gave the financially decimated GM $100 billion of taxpayer money.

Of course, this information was purposely withheld from the bankruptcy court.  And Judge Gerber is not happy he was deceived.

From the Washington Free Beacon,

A New York federal judge may rule imminently on a case that could reverse the General Motors (GM) bailout and send the company back into bankruptcy, according to sources close to the case.

At issue is a backroom deal hatched by GM to fulfill the Obama administration’s demand for a quick bankruptcy, draining the automaker of nearly all of its cash on hand and leaving it in worse shape than it was when it collapsed in 2009.

One condition of GM’s bailout was to shore up its overseas subsidiaries. On the eve of entering bankruptcy, the company cut a $367 million “lock-up agreement” with several major hedge funds to prevent GM Canada from failing. The agreement ensured that GM could spin-off its liabilities to “old GM,” while using a multi-billion dollar bailout to create a new company.

All of that could be reversed if bankruptcy Judge Robert Gerber reopens the process and rules in favor of old GM trustees, who are suing the hedge funds at the center of the lockout agreement.

“In this particular situation, there’s $1.3 billion in liabilities, but that’s just what’s officially back on the table if the court rules for old GM,” said a bankruptcy expert close to the negotiations. “If those go back on the table then everything could be back on the table and [new GM] would have to address them.”

Those liabilities, which include old GM’s debt and product liabilities that pre-date bankruptcy, are valued at $30 billion, a sum that would wipe out the company’s $34.6 billion cash reserves.

Negotiators representing both sides of the case met in New York on Thursday to try to settle the suit through mediation rather than a court order.

“They’re feeling pretty good about it,” said an industry insider who spoke to one of the hedge fund negotiators on Thursday.

Gerber, the federal judge who initially approved the sale with little hesitation, now has the power to reverse the entire auto bailout. He has expressed deep frustration with the company for failing to disclose the deal, leading some to speculate that he may overturn one of President Barack Obama’s signature achievements. …

“The judge has made it very clear that he is greatly dissatisfied with the process,” one analyst told the Washington Free Beacon in October. “He’s basically implying that GM hid it from him and that reopening the sale is a possibility.”

If Gerber takes that course the company could be forced to return the $30 billion taxpayer bailout that it received through the course of bankruptcy, on top of the new liabilities. …

“Officials from the U.S. and Canada were very much involved—they were in the building when the deal was being negotiated,” an insider familiar with the deal said in October.

The Treasury Department, which oversaw the auto bailout, did not return emails for comment.

The company is taking the possibility of a negative ruling from Gerber very seriously. GM attorneys filed court documents saying that the lawsuit “could create a chaotic situation for GM Canada, spawn new litigation in other forums, and potentially provide a windfall to the noteholders.”

The bankruptcy expert said if the two sides cannot come to an agreement on Thursday, Gerber could preside over one of the most historic rulings in bankruptcy court history.

“This has tremendous implications for future of American business and bankruptcy precedent,” he said. “It means more than just GM—this is the rule of law and how creditors are treated in the United States legal system.”

No wonder Hugo Chavez endorsed Obama…he sees his kindred spirit.  What a pile of lies, deceit, and immoral behavior coming from the Obama presidency.  The judge should reverse the whole thing and remind the Liberal thugs that we are not Venezuela.

Hat tip: Gini

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  • Pingback: NY Judge Set To Rule On Deceitful GM BailoutPolitifreak()

  • Alvin

    Wanna bet how this turns out?

  • Bryan

    Once again another story main stream media is ignoring…

  • paul52

    And Barry campaigned on GM’s success ad nauseum. Gag!

  • cavt

    MSM missing in action again. Wonder if this would have any effect on the Delta workers who got screwed in the original deal?

  • Patty

    The Treasury Department, which oversaw the auto bailout, did not return emails for comment.


    Eric Holder has not been forthcoming about Fast and Furious campaign

    See any similarity here?

  • Patty


    Rotting whale casts foul stench into Malibu

    Read more here: http://www.miamiherald.com/2012/12/06/3129884/rotting-whale-is-gigantic-problem.html#storylink=cpy


    Obama will hope right on this, because the rich donors must be complaining and we can’t have that.

  • HolyShiiteBatman

    Patty, the stench is actually being caused by the rotting souls of the celebs that voted for Obama. The whale would be just a convenient excuse.

  • gastorgrab

    Who appointed this judge?

    Liberal judges don’t seem to care what the law or the constitution says. They exist only to protect, and sometimes enact, liberal precedents.

    Imagine if the NFL played by a ‘Living Rule Book’. Long standing rules that players have trained themselves to work around would be changed in mid-play. The referee would single out the more skilled players for penalties, ASSUMING that their performance is the result of cheating……..the result of violating a rule that does not yet exist.

    And of course the only way to ensure ‘equality’ is if both teams scored exactly the same number of goals. For equality’s sake, every game must end in a tie.

  • Buffalobob

    The legitimate bond holders got screwed, the union goons walked away with pockets full of quid pro quo money.

  • wodiej

    of course obama and his admin will say they didn’t know anything about this.

  • Pingback: NY Judge Set To Rule On Deceitful GM Bailout | Born Conservative()

  • With Michigan possibly becoming a right to work state and now this, perhaps there is hope for our Republic.


  • Rightdawg

    Gee, let’s see how this will turn out. Judge Gerber is a wuss, this is all a roadshow to cover his own ass by at least “looking into” the matter, and will cave after he gets “a call,” just like Chief Justice Roberts folded on Obamacare after he got “a call.”

  • I wish they would have bailed out Hostess instead of GM, with the economy like this at least I could have afforded a box of Twinkies or HoHOs and been able to enjoy life for a few sweet minutes.
    GM took my hard earned money and did absolutely nothing for it, this Holiday season here’s hoping GM and our President Fail in all their endeavors. I will always refer my friends to buy a Ford…And here’s hoping moochie chokes on all of the Hostess products she has hoarded in the WH basement….

  • stuart

    But, …but… I was assured by Obama himself that Al Queida was dead, and GM was still alive.

  • squeaky

    [CNSNews.com) – Seventy-three percent of the new civilian jobs created in the United States over the last five months are in government..] gm alive is only part of the story with the remainder…….on life support.

  • Look-Out

    OT — Petition BHO to Cancel Hawaii Vacation – at 25K signatures, it’ll require a response from POTUS

    A new petition gaining ground on the White House website calls on President Obama to cancel his estimated $4 million vacation and devote the money instead to helping victims of Hurricane Sandy.
    The $4 million price tag for Obama’s vacation was calculated by the Hawaii Reporter and includes $250,000 in local costs.

    But the actual expense to the federal government alone is likely even higher than $4 million, since the cost of just the transportation – roundtrip flights for Air Force One and an accompanying cargo plane – amounts to about $3,530,000, according to the Reporter.


  • Adirondack Patriot

    This country isn’t GOING to go over the fiscal cliff in January. It went over the fiscal cliff in 2008.

    What’s going to happen in January is that we are going to hit the ground.

  • SeniorD

    No politician (or MSM) is will to say what they mean and will never mean what they say.

    The ObaMOOO (Obams the Marxist Oval Office Occupier) and his sycophantic puppets in the MSM will stonewall any discussion on this subject.

  • bg


    doubt it.. 🙁

    Prince Alwaleed: I Would Like To
    Thank US Govt For Saving My Butt

    too numerous to count links to post, ergo, please
    click on links, connecting links, and scroll thread
    comments for much more, thank you..


    al-Mansour works for Prince Alwaleed, al-Mansour
    (aka: Donald Warden) was also one of the founders
    of the Black Panthers, he also instructs his subjects
    in radical teachings, including harming the white man..

    Don/ald Warden

    [Before becoming a Muslim, al-Mansour in the 1960s was named Don Warden. He was deeply involved in San Francisco Bay Area racial politics as founder of a group called the African American Association. A close personal adviser to Huey Newton and Bobby Seale, al-Mansour helped the pair establish the Black Panther Party but later broke with them when they entered coalitions with white radical groups.

    In the mid-1970s al-Mansour met Saudi Prince Alwaleed bin Tatal, who today is best known for having offered a $10 million donation toward 9/11 relief efforts in 2001 — an offer that was rejected by New York Mayor Rudolph Giuliani when the prince suggested that the terrorist attacks were an indication that America “should re-examine its policies in the Middle East and adopt a more balanced stand toward the Palestinian cause.” Al-Mansour’s relationship with the prince eventually led to al-Mansour’s hiring as attorney to King Saud. He has since been an adviser to Saudi billionaires who fund the spread of Wahhabi extremism in America.]

    ~ al-Mansour

    “unless the white masses really understand, and the black
    masses really understand.. there’s going to be the largest
    bloodbath in America –

    the white people don’t feel bad, whatever you do to em they deserve it, god wants you to do it, and that if you cut off the nose, cut off the ears, take flesh out of their body.. don’t worry, gahh…d wants you to do it!”

    btw, the Black Panthers are also connected
    the Underground Weathermen
    (Obama’s pal
    for decades Bill Ayers).. yes, there’s more..


  • bg


    re: #21 December 7, 2012 at 12:59 pm bg

    Prince Alwaleed Bin Talal on Obama’s Handling of Israel


  • Marcy

    OH MY….next we will learn: GM is dead and Osama Bin Laden is alive!

  • bg


    September 22, 2012

    Muslim Brotherhood ‘infiltrated’ U.S. gov’t

    [The Muslim Brotherhood is a radical Islamist organization that has
    successfully penetrated both political parties and the delicate areas
    of defense and national security.

    Retired U.S. Army Lt. Gen. William “Jerry” Boykin, executive vice
    president of the Family Research Council, told WND’s Greg Corombos
    that people with connections to the Muslim Brotherhood are in vital
    positions within every significant area of the U.S. government. He
    specifically cited high security clearances for such people in the
    Pentagon and the Department of Homeland Security.

    He said neither Republicans nor Democrats want to protest
    too loudly over concerns of being branded intolerant.

    Boykin said Republicans proved their weakness on the issue by roundly
    condemning Rep. Michele Bachmann, R-Minn., for sounding the alarm on
    this issue and specifically wondering about the Brotherhood ties of
    Huma Abedin, a top assistant to Secretary of State Hillary Clinton.]

    please scroll for much more, thank you..


  • democraps suck

    Nothing to see here…another liberal judge will side with the commie mooslum and if he doesn’t he will end up dead…..typical obummer tactics

  • FurryGuy

    #9 December 7, 2012 at 11:35 am
    gastorgrab commented:

    How exactly do you know beyond a reasonable doubt Gerber is a Liberal judge? FALSE and incomplete testimony decided the original outcome.

    Besides even if Judge Gerber does rule differently this time around doesn’t mean all things are copacetic. Obama and his criminal administration have defied legal rulings they disagreed with before, so why expect them to follow the rule of law now if the Judge rules differently?

  • Jerry C

    “It means more than just GM—this is the rule of law and how creditors are treated in the United States legal system.”

    OMG. Rule of law? This adminstration is being run by the Lawless One. The sooner you realize who he is, the sooner you can come to accept your Lord & Savior Jesus Christ. Media is calling it the Fiscal Cliff. The Word of God calls it Great Tribulation. Welcome to the End Times.

  • Finncrisp

    The judge better hire a food taster. And get a security detail. Barry won’t take this “abuse of power”…

  • Highlander

    I predict he caves in three, two, one …..

  • this judge is as likely to rule against GM as Obama is likely to start telling the truth about anything.

  • charlotte

    Ayers is not an academic He’s a terrorist. Chris Kennedy, Robert Kennedy’s son denied Obama Ayers lifetime academic tenure at the University of Illinois at Chicago on the grounds that Ayers dedicated his book Prairie Fire to Sirhan Sirhan, Robert Kennedy’s assassin.

    AND as for Obama and Ayers having ties that go way back,how about this?

    Read about the Brink’s robbery in 1981: Dohrn and Ayers were allegedly maybe involved. http://en.wikipedia.org/wiki/Brink%27s_robbery_%281981%29.

    Sekou Odinga aka Nathaniel Burns was one of those arrested. Burns changed his name to Sekou Odinga. He was a Black Panther.
    How did Sekou Odinga, previously known as Nathaniel Burns, come to adopt the name Odinga in the early 1980s?

    Remember Odinga is the name of Obama’s cousin in Kenya.
    Raila Odinga is a Marxist, Islamist Kenyan politician that Obama campaigned for IN KENYA(in contravention of the Logan Act) while he was a Chicago senator.
    HOW could Burns have known the name Odinga otherwise?

    Remember the Brink’s robbery went down in the early 1980s with many (?all) of the Weathermen/Black Panthers/Black Liberation Army involved.

    I posit that Nathaniel Burns aka Sekou Odinga HAD TO HAVE KNOWN OBAMA in order to adopt this East African name. He could not have known it otherwise as this was in PRE-INTERNET DAYS. The name Odinga is from East Africa.

    AND: Moochelle Obama hosted the rapper Common to the WH last year.

    He rapped about Assata Shakur, arrested in May 1973. Assata Shakur was involved in a shootout on the New Jersey Turnpike, during which New Jersey State Trooper Werner Foerster and BLA member Zayd Malik Shakur were killed and Shakur and Trooper James Harper were wounded. She was sentenced ? to life but escaped in 1979 to Cuba.

    Her brother Mutulu Shakur, stepfather to Tupac Shakur, a teenage communist rapper who was killed by ? gangs aided her escape AND was involved in the Brinks robbery too. http://en.wikipedia.org/wiki/Mutulu_Shakur. He is in jail until 2016. Watch Obama give him a pardon as well as some of the others not yet released.

    They are all interconnected.They all know/knew each other.All Commie Marxist thugs.

    Was Obama a member of the Weathermen under the name Barry Soetoro/Dunham/Soebarkah/Barak Mounir Ubayd/Harrison Bounel (whatever) with his buddies Ayers and Dohrn?The FBI did not have enough evidence to convict Dohrn even though they knew she was guilty.

    I think Obama HAD TO HAVE BEEN either a member of the Weathermen or he knew them in the 80s. He may even have been involved in the Brink’s robbery as there were several people they never caught. I suspect he was involved.
    And guess what Bill Ayers’ kids names are? Zayd and Malik.
    THEY HAD TO HAVE BEEN IN THE WEATHER UNDERGROUND. And Bill and Bernardine brought Kathy Boudin’s Kid Chesa Boudin up when hid mother was sentenced to life in jail. Chese now works for Chavez in Venezuela.
    they are all terrorists

  • midusdew

    How could it go back to the same judge that first approved the lawlessness????????? WFSIT

  • dwdude

    that’s why obama said little timmy was the only one for the job, tax evasion and all. they know it takes years and years for this to come to light, long after the company is looted. so who actually got the money? they should go to jail as well…along with the forehead on legs geithner.

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