Bad TV News: GM Owes Ad Firms $167.4 Mil

Jun 2, 2009  •  Post A Comment


General Motors Corp. owes advertising firms Publicis Groupe SA and Interpublic Group of Cos. and their subsidiaries $167.4 million, Bloomberg News reports, citing a list of the bankrupt company’s top 50 unsecured creditors. That’s bad news for the television industry, writes

The advertising firms bought airtime for GM on TV networks, cable channels and more, and the TV companies won’t get paid until the ad firms recoup the money from GM, the Web site says.

“Generally, unsecured creditors aren’t going to receive 100% of their claim,” Mechele Dickerson, a bankruptcy professor at University of Texas at Austin, tells Bloomberg in an interview.

—Aimee Picchi