Subjective Intent Does Not Save $1.5B Secured Claim Against GM

Sometimes, the simplest of errors can be the most costly. Such was the case with a large syndicated secured loan made to General Motors Co. Due to a simple filing error, what the lender and borrower had always intended to be a secured loan will now be treated as a general unsecured claim.

14 minute read April 02, 2015 at 12:00 AM
By
Mark A. Salzberg
Subjective Intent Does Not Save $1.5B Secured Claim Against GM

The legal principles governing corporate finance often are complex. Sometimes, however, the simplest of errors can be the most costly. Such was the case with a large syndicated secured loan made to General Motors Co.

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