Suppliers, vendors and other parties doing business with General Motors Corp. under prepetition contracts should be receiving a notice titled "Notice of (I) Debtors’ Intent to Assume and Assign Certain Executory Contracts, Unexpired Leases of Personal Property, and Unexpired Leases of Nonresidential Real Property, and (II) Cure Amounts Related Thereto."
The Assumption Notice includes a user ID and password that will allow access to http://www.contractnotice.com/, the GM Web site where the automaker has listed prepetition contracts that it may assume and assign to the "new" GM in connection with the anticipated bankruptcy sale.
Before GM can assume a prepetition contract, however, the automaker is required to "cure" prepetition defaults. The cure amount that GM claims it owes is also scheduled on the Web site. Suppliers, vendors and other parties to a prepetition GM contract who receive the Assumption Notice have 10 days from the date of the notice to object to the cure amount GM has scheduled. If they fail to object, they are bound by the amount that GM has scheduled.
We are informed that the notices were served on Friday, June 5, and anticipate that the notice was dated that date. However, the 10-day period runs from the date of the notice, not the date of service. It is possible that objections may need to be filed as early as this Friday, June 12, if a party to a scheduled contract objects to the amount scheduled by GM.
Counsel for GM disclaims any ability to provide a back door or any other access to the Web site. There does not appear to be any way to access it without the GM-assigned user and password. Suppliers and vendors will have to do that themselves.
Suppliers, landlords, vendors, lessors, or other parties doing business with GM under a prepetition contract should not underestimate the importance of this Assumption Notice.
If you have questions, please contact any member of Warner Norcross & Judd's bankruptcy and creditors' rights or automotive practice groups.