Motors Liquidation filed a plan with a U.S. court to come out of bankruptcy

Article by Christian Andrei, on September 4, 2010

Motors Liquidation Co., the old shell of General Motors Co., has a pending plan with a US court to emerge from bankruptcy. As a result of this plan’s confirmation, basically all of its assets and liabilities will be moved to four trusts.

This new plan seeks to allocate the 'New GM' stock and warrants to unsecured creditors. Motors Liquidation is actually the shell of General Motors that kept all of GM's old unwanted assets and liabilities after the "new GM" – which was renamed General Motors Co. – emerged from bankruptcy protection after having completed a sale of its finest assets such as Chevrolet and Cadillac to a new company that the US Treasury had funded.

Currently, Motors Liquidation presently owns 10% of General Motors common stock plus warrants exercisable for a further 15% of General Motors common stock on a fully diluted basis.

Motors Liquidation said that it expects that the plan will be confirmed by the court in the first quarter of 2011.

The company asserts that most of the unsecured claims will be resolved within two years of the plan being confirmed. [via autonews - sub. required]

Topics: bankruptcy

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