Jun 02 2009
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The GM Bankruptcy: The Costs of Paying the Workers
Workers’ Compensation Obligations:
GM maintains letters of credit, securities deposits or surety bonds totaling $453 million for workers’ compensation bureaus in the 26 states in which it self-insures its benefits, plus an annual premium of $15.5 million to maintain an umbrella insurance policy against claims.
AS of the filing, about 12,500 claims were pending, with the total amount still payable of $1.47 billion, with cash payments for the next 12 months expected to be $240 million.
