MEDIA AVAILABILITY: GM Bankruptcy: What About Terminated GM Dealerships? Former U.S. Attorney Seeks Piece of Restructured Pie for Thousands of Closed Auto Dealers
WASHINGTON, June 1 /PRNewswire-USNewswire/ -- With General Motors filing for bankruptcy, former U.S. Attorney G. Douglas Jones of Birmingham, who is seeking a piece of the restructured pie for thousands of closed GM auto dealerships, is available today for media interviews and analysis.
This morning, GM filed for bankruptcy. According to The Washington Post, under the proposed restructuring, about 60 percent of the new GM would be owned by the United States, about 12 percent by the governments of Canada and Ontario, a union health trust would own 17.5 percent, and the company's current bondholders would get 10 percent.
Now Jones is asking: "What about terminated GM dealerships?"
GM announced last month that they intended to slash auto dealerships by 42 percent from 2008 to 2010 levels. Dealerships will be reduced by 2,641 locations, from 6,246 to 3,605.
Jones recently stated, "We understand that GM needs to reduce the number of dealerships in order to survive the financial crisis that they have gotten themselves into, but GM must honor the legal and contractual obligations they have to their loyal dealers. Bondholders and union members are not the only groups that have financial obligations due to them by GM."
Jones, who served as U.S. Attorney for the Northern District of Alabama from 1997 through 2001, is now a partner with the Haskell Slaughter Young & Rediker, LLC law firm in Birmingham, which filed suit against GM and GMAC in February for allegedly arbitrarily and capriciously altering dealership financing terms and requirements in an effort to drive dealers out of business.
To schedule media interviews or for additional information, please contact Tyler Florence directly at tmf@hsy.com or call (205) 834-9797
