GM Bankruptcy Filing First Day Motions

GM has filed for Bankruptcy protection and as a part of that process it has filed what are referred to as first day motions. Those motions seek to do the following:

Give priority (administrative) status to all ordinary business obligations due to dealers incurred after the bankruptcy filing.

Obtain authority to continue to pay pre-bankruptcy claims for warranty programs, recall programs, credit card programs, sales incentive programs, Dealer support programs, customer rebates and allowances, and repurchase programs as GM determines is appropriate.

GM has stated in its Motions that it wishes to honor its obligations to dealers, including those who received a termination notice. These include holdbacks, wholesale floor-plan support program, and money for regional-marketing efforts.