AFSCME 3357-HOF'S BLOG

Could GM's VEBA be DOA?
Objections at the SEC to $4.4 Billion IOU

Workers and a retiree have filed objections at the Securities and Exchange Commission to the issuance of a $4.4 Billion "convertible note" that is a core part of the Voluntary Employees Benefit Agreement or VEBA that was negotiated with the UAW as a means to fund retiree health care. The objections cite failure to disclose the risks inherent in GM's financial condition, and the risk the note would be wortheless if GM files bankruptcy. According to the Detroit News, despite the objection the VEBA is likely to be approved by the US District Court in Detroit.