Story from the Wall Street JournalGM, as part of its restructuring in bankruptcy, is looking to rid itself of its leases on seven corporate jets and its hangar at Detroit Metropolitan Airport, according to a motion filed in court.
The company is asking a judge to let it terminate the leases because it says it doesn’t plan to sell them to the New GM and that “the Debtors have determined that rejecting the Leases and surrendering possession of the property to the relevant lessor is in the best interests of their estates.”
Five of the jets are medium-range Gulfstream G-IVs, leased from AVN Air LLC. Two are longer-range Gulfstream G-Vs, leased from Suntrust Corp.
Lawmakers criticized the CEOs of GM, Ford, and Chrysler when the trio flew to Washington on separate private jets — as Auto Tracker first reported in November — to ask for government support for the auto industry. On a second trip, the executives drove to the capital from Detroit.
Among the leases GM is seeking to terminate is one for the G-IV with the tail number N5116 that was spotted by ABC News at Washington’s Dulles airport during the testimony of then- CEO Rick Wagoner in Congress.
After last fall’s public relations debacle, GM said it was returning two of its seven planes to the leasing company, which it declined to name at the time. It said it had returned two others in September.
No comments:
Post a Comment