Motors Liquidation Company (fka MTLQQ)

[eddy2]

http://ih.advfn.com/p.php?pid=squote&symbol=BCBAY

[eddy2]

http://www.urbandictionary.com/define.php?term=dumbty

[eddy2]

http://www.urbandictionary.com/define.php?term=humpty

[eddy2]

[img][/img]

It was said that Humpty-Dumpty tale came from the great tulip crash and that is how Wall street got its name.

[eddy2]

As we look back into history you will find a trend happening and then she will all fall into place as to how it once worked but has changed over time.


One is were now a company should its business plan have some glitches they can have a second chance at correcting it by shorting there own stock " selling the stock below the strike price set" were one a par value has to be set for the stock and two the debt for the short position held goes to early investors that is not to say one can't capitalize on a short position take by the company by buying low in a sector.


A sector is for example MTLQE, then a change to MTLQQ the selling high in that particular sector and buying low and watching should the sector change to a lower or higher sector.


Now should you hang on to a low sector you will take on the debt from that point upwards to the point of issuing an S1,2,3 ect. this is often noted in the industry as a arbitration of debt that is very different to the arbitration of an asset.


That capital raised by this process can now be used to secure further institutional debt that may or not be a convertable debt depending on the outcome of the business model in question at the time the debt was requested from the sanction of the sec as to if the company could in fact short its own stock.


The shorting of this nature is different then the one were one can borrow stock or the one were a investor can sell his or her stock short.


The shorting I am talking about has to have a public anouncement of the fact this is done and not that a secondary trading of shares is not taking place cause granted there will be some of that going on and that is were capital surplus and retained earnings ect will break those two components apart speaking in general to the two different secondary offerings were one is debt and the other is the not understanding as to what is really
happening in the market place or that someone is forgoing debt to take on lower debt not understanding how now they will have to wait even longer to recoup there capital that could push them into another product cycle or hunt for new commodities or service depending again on what the company is offering to its customers.

[eddy2]

http://en.wikipedia.org/wiki/Crony_capitalism

[eddy2]

http://www.montupet.fr/IMG/pdf/Montupet_Annual_Report_2011.pdf


Owns the Dunmurry plant today that makes parts for Ford out of Belfast with 600 employed a plant at a song of a price when purchased for what it cost shareholders to aquire.

[eddy2]

Learn from history

[eddy2]

[eddy2]

Twenty five years is a small wait time.

[eddy2]

How this works is easy to understand. The company will sell shares from the parent company to the sub company but because it is all one company one will hold the debt while the other holds the equity.


This creates millions and millions of shares on the book of the borrower that uses share holders equity for collateral and often noted as leverage with the use of share holders equity by selling shares at a discount from the offering price were this discount will be share holders debt o the parents balance sheet were the sub entity will hold the debt as common shares.


This practice is always done in conjunction to the leveraging of a equity purchase of a company that is making profits the debt again goes on the balance sheet of the parent company and the leveraged revenue will show up on the sub entity as capital surplus and retained earnings were the company could be in a development stage with negative earnings or no earnings and plenty of depreciation for construction not yet completed with no real market value or what one can call third stage mark to market assets " read FAS 157 "



In a deleveraging process the company when she can stand on her own as far as revenue will sell the piggyback positions on both its own stock as well as on the company it leveraged revenue of off to pay of its debt but if the debt should come due before she can stand on her own or should the share debt they purchased to leverage revenue should fall in value they will first try to deliverage there own stock position on a chapter 11 restructuring and try to put more collateral down for the other buying time from the creditors by paying interest only by leveraging now there own assets that they have built should they be in a more advanced stage then the level three stage.



The level one through three have to be noted in the notes if the assets are under the parent company filings " public awareness reporting entity" if the assets are being built under the sub entity " none reporting entity " then one can assume the assets are of a reporting commodity that pricing of the asset is dependent on profits established " retained earnings "

[eddy2]

Sly the lender of the shares is the company that has a banking deal with the underwriter so the borrower is off the hook once shares are returned that he borrowed and the company is on the hook for the debt but what it does is buy,s the company time and allows them too use there shares as collateral by lending them and having the borrower put up the collateral.


Leveraging is what they call it but there is no bank in the world going to do it unless they can use the depreciation on the loss should things go bad for them and there they have to have revenue or will forced to lend capital back to the company to keep things afloat taking a share position but a company has to be close to making money before they allow this to take place often having every thing end up with the back and insiders who hold stock under another entity under the parent company who went public.


Control is every thing if you can control the revenue you can control the debt payment now a court the feels this is happening will have new people step in or point someone else to take charge even if the ceo holds the majority of the debt but it can take years and years to go through the courts until then government will step in and pick up the tap until the courts get things sorted out.


This is false hope but still hope here.

[eddy2]

Interesting how investors think reading these posts but if you think about it if you shorted the stock you are still required to cover your short position even if the old commons are wiped out so the one lending has an advantage as well, hedge funds do it all the time.


Should the lender get his shares back he will turn around and sell them into the market if he can.


Now what you have to understand is your not really lending cause you have taken collateral for the shares from the one who borrowed them in the form of debt that the borrower ha set up to borrow your shares so if your going to borrow shares and hold debt against that asset it better be a good asset or the lender will be taking something else from you like our home, car ect. and if you ever set up a trading account were you can borrow funds to buy equity what is they want to know your S I N to garnish your wages if your asset is worth zip you borrowed on.


Should it go the other way well again they can garnish your wages for live if you can't pay.

[eddy2]

What is happening here "ZIPPO" I see

[eddy2]

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=97993013


Good buy Tim

[eddy2]

She will come back they always do not as the same company but something maybe making car seats or who knows the rims or something a knob maybe.

[puppydotcom]

so, does everyone NOW still holding GM commons understand why they should have stayed away from this stock

[puppydotcom]

May 25. 2011 1:00AM, 'Old GM' exit bid opens with GM stock sale
Offer is part of plan to liquidate, settle claims by year's end
Christina Rogers/ The Detroit News

The estate of the "old" General Motors Corp. began selling stock and warrants in the new GM on Tuesday, as part of a plan to liquidate the company's remnants by the year's end.

Motors Liquidation Co., the leftovers from old GM, said in a regulatory filing that it will sell $5.7 million worth of common stock and warrants, or about 245 million shares. That includes 87,000 shares of common stock, valued at $2.7 million, and another 158,000 in warrants to buy "new" GM stock at pre-set purchase prices.

Half of the warrants will allow investors to buy the stock at $10 a share; the rest will lock in a price of $18.33 per share, according to a U.S. Securities and Exchange Commission filing.

During the automaker's 2009 bankruptcy, the new GM splintered off from Motors Liquidation, which holds old GM's debts and bad assets. All "good" assets owned by the old GM were sold to the new GM as part of the government's $49.5 billion bailout.

The U.S. Treasury has since reduced its 61 percent majority stake in the new GM to about one-fourth and has recovered $23 billion from the bailout.

A federal bankruptcy judge approved the old GM's liquidation plan in March, clearing the way for bondholders and creditors who lost billions of dollars in the automaker's bankruptcy to receive some compensation.

The plan created four trusts to execute the wind-down plan and resolve outstanding claims. One trust provides $536 million to clean up polluted industrial sites; another resolves asbestos and litigation claims.

There's also a trust to distribute new GM stock to creditors and bondholders. About 75 percent of stocks and warrants due to creditors were issued last month. The remainder likely will be paid in the next several months.

Last month, old GM stock was canceled and made worthless. Old GM stockholders received no recovery from the estate.

[etzetrade]

Thank you very much for your assistance. Hoping one day to meet you in LVS if we are going to have a celebrating party there for WAMU.

[marayatano]

Well, I had already sold my notes, but here is some info:

In finance, a warrant is a security that entitles the holder to buy the underlying stock of the issuing company at a fixed exercise price until the expiry date.

Warrants and options are similar in that the two contractual financial instruments allow the holder special rights to buy securities. Both are discretionary and have expiration dates. The word warrant simply means to "endow with the right", which is only slightly different to the meaning of an option.

Warrants are frequently attached to bonds or preferred stock as a sweetener, allowing the issuer to pay lower interest rates or dividends. They can be used to enhance the yield of the bond, and make them more attractive to potential buyers. Warrants can also be used in private equity deals. Frequently, these warrants are detachable, and can be sold independently of the bond or stock.

In the case of warrants issued with preferred stocks, stockholders may need to detach and sell the warrant before they can receive dividend payments. Thus, it is sometimes beneficial to detach and sell a warrant as soon as possible so the investor can earn dividends.

Warrants are actively traded in some financial markets such as Deutsche Börse and Hong Kong.[1] In Hong Kong Stock Exchange, warrants accounted for 11.7% of the turnover in the first quarter of 2009, just second to the callable bull/bear contract.[2]

More info here:

http://en.wikipedia.org/wiki/Warrant_%28finance%29

[etzetrade]

I have 1000 old GM notes, and have been converted on April 21, 2011 as follows:

89 shares of common stock
87 shares of warrant A w/market value about $22.00
87 shares of warrant B w/market value about $18.00

I need your help because I am not familiar with these warrants. How does it work? Appreciate your assistance.

[puppydotcom]

lol... old GM... RIP = Rest in Pieces

[MorningLightMountain]

yikes!!!

[puppydotcom]

yeeeessss, 25 % gap with very high volume

hows that trading going now?

[puppydotcom]

yup, everyone who read this board from day one was well warned .. of the ending ...

[puppydotcom]

odds are 99.9% old commons will receive nothing from the one share ..
... on hold until 12/11

as of today all shares of old GM (MTLQQ) have been terminated


Class 6 - Equity Interests in MLC. On the Effective Date, all Equity
Interests issued by MLC shall be cancelled and one new share of MLC’s common stock
shall be issued to a custodian to be designated by MLC, who will hold such share for the
benefit of the holders of such former Equity Interests consistent with their former
economic entitlements. All Equity Interests of the other Debtors shall be cancelled when
such Debtors are dissolved or merged out of existence in accordance with Section 6.10
hereof. Each holder of an Equity Interest shall neither receive nor retain any property or
interest in property on account of such Equity Interest; provided, however, that in the
event all Allowed Claims have been satisfied in full, holders of Equity Interests may
receive a pro rata distribution of any remaining assets of the Debtors. On or promptly
after the Effective Date, but in no event later than December 15, 2011, MLC shall file
with the Securities and Exchange Commission a Form 15 for the purpose of terminating
the registration of any of its publicly-traded securities. All Equity Interests in MLC
outstanding after the Effective Date shall be cancelled on the date MLC is dissolved in
accordance with Section 6.10 hereof. The rights of a holder of an Equity Interest or
32
former Equity Interest issued by MLC pursuant to this Section 4.6 shall be
nontransferable.
ARTICLE


http://www.motorsliquidationdocket.com/pdflib/9836a_50026.pdf

[Chili Palmer]

Yup the common shareholders/taxpayers got it good. However everyone should have known this was coming. Thank you, Washington!

[Renee]

Regretably it means that MTLQQ stock has been cancelled , meaning no more shares exist excepting for ONE created and issued share of MTLQQ to a trust .

New equity will be authorized for the Secured Creditors , but former shareholders' equity no longer exists . Brokerage accounts will likely display the amount of MTLQQ cancelled shares are held in their client accounts but there will be NO VALUE affixed to those shares .

Unconscionable !!

[IBBY]

WHT DOES THIS MEAN FOR US

[Renee]

08:05 MTLQQ Motors Liquidation Company Common Stock 4/1/2011

All existing common stock of MLC is cancelled as of the effective date of the Plan, (3/31/11). One new share of common stock will be issued to a trust, to be held for the benefit of the former common stock holders consistent with shareholders' former economic entitlements.

http://www.otcbb.com/asp/dailylist_detail.asp?d=04/01/2011&mkt_ctg=ALL

[puppydotcom]

Old GM liquidation OK'd
MARCH 31,2011
Mid-December deadline set; environmental cleanup plan also approved with added $51M
David Shepardson / Detroit News Washington Bureau

Washington — A federal bankruptcy judge has signed an order officially approving a plan to liquidate the remains of old General Motors Corp. by mid-December.

Judge Robert Gerber in New York also approved a cleanup plan reached between old GM and the Environmental Protection Agency.

Late Tuesday, Gerber approved a consent decree that included another $51 million settlement to cover dozens of sites. That is in addition to a previously announced $773 million nationwide deal to clean up 89 polluted sites in 14 states, including 47 in Michigan.

The move should clear the way for creditors and former bondholders of old GM to get shares in new GM by mid-April. It also will result in the canceling of old GM stock, which still trades over the counter.

A total of 150 million new shares and warrants to purchase 123 million shares in new GM will be distributed to creditors and to pay for other claims, including the environmental trusts and to wind down the remainder of the estate.

Kirk Ludtke, an auto analyst at CRT Capital, recommended in a research note Wednesday that investors buy some outstanding old GM bonds that are trading at around 28 percent of face value, because he believes they will be worth more once they are exchanged for shares of new GM stock.

The U.S. government, which gave GM a $49.5 billion bailout and still owns 33 percent of new GM, has endorsed the wind-down plan. The Canadian and Ontario governments gave GM a separate $9.5 billion bailout, and they also urged approval of the plan.

New GM was formed by the sale of old GM's "good" assets to a new government-sponsored company that emerged from bankruptcy in July 2009.

Old GM, now known as Motors Liquidation Co., will go out of business later this year — and no later than Dec. 15, the company told Gerber.

[e-mail]

[puppydotcom]

again, trading has nothing to do with the end results -

the filing - you brought up the filing in the first place ..
... are you confused???

please trade away!!

[dibbley]

yeeeessss, 25 % gap with very high volume

Please can you specify exactly SEC filling which you mentioned?

http://www.sec.gov/cgi-bin/browse-edgar?company=&match=&CIK=mtlqq&filenum=&State=&Country=&SIC=&owner=exclude&Find=Find+Companies&action=getcompany

I understand there should be nothing if claims will be higher than assets and than we will see something like this:
http://www.sec.gov/Archives/edgar/data/944522/000095012310033344/0000950123-10-033344-index.htm

But are you sure it is this case?

[locksflooring]

Nobody would have ever Guessed that this would be Trading for this Long.

no its not speculation on my part. its not my fault you don't understand the bankruptcy

[puppydotcom]

no its not speculation on my part. its not my fault you don't understand the bankruptcy

and it also traded for over a dollar when it came out .. trading proves nothing in regards to the bankruptcy

I very much doubt you even read the SEC filing or understand what it means

no reason to dwell on this ..

buy away ...

and as I said before' if your still holding when the Judge discharges the bankruptcy they will also cancel the common shares and the ticker ...

hey I'm not always 100% correct ... just 99%

you do enjoy a 1% margin for error!

[dibbley]

it is the same speculation as yours posts.
I think we cannot see what is preparing in backgroung.
From last trading day you can see massive gain + 20 % during 16 M volume and today trading session looks similar...

[puppydotcom]

its 100% speculation ..

there will be no dollars for common share holders ..

please .. buy away>> invest every dime you have

[dibbley]

I thing you are telling a lie.

see http://www.streetinsider.com/13Gs/Motors+Liquidation+Discloses+23.1%25+Ownership+in+General+Motors+%28GM%29/6375826.html

Sentences like this "It is the Company's strong belief that there will be no value at all for common stockholders in the bankruptcy liquidation process, even under the most optimistic of scenario."

are typical for companies in BK process. I think there should be another scenario than the worst possible.
Because I don't understand why someone bought millions of share per one trading day when it shall be canceled... it doesnt look like only speculation.

[puppydotcom]

I understand MTLQQ has only 10% share in GM and mission of this company is sale assets to satisfy claims of the creditors

MTLQQ does not have 10% .. it is the liquidation company under the BK plan ...

all assets will be liquidated ...

ALL TRADING FROM DAY ONE HAS BEEN MISINFORMED OR/AND PURE SPECULATION TRADING.

[puppydotcom]

The chapter 7 liquidation simply means .. ALL of the old assets dumped in MTLQQ will be sold - MTLQQ is just a ticker change
from the old GM corporation. All of the good assets were purchased by the government and formed a new company called the new ( GM ) trading now under ticker General Motors Company
(Public, NYSE:GM)GM at 31.50 per share today

if you own MTLQQ you own the bad company and it is going away 100%

once all the old assets are sold or totally written off
( unsellable ) the chapter 7 will be discharged by the courts. MTLQQ will no longer exist and the stock will no longer trade because the ticker MTLQQ will not be in effect due to the stock registration being canceled by the SEC and the BK judge.

anyone still holding common shares of MTLQQ at bankruptcy discharge ... will be deemed worthless securities

the only employees involved in MTLQQ are on the asset liquidation side ... when they sell the plants .. they will be sold to other companies and have nothing to do with MTLQQ

in simple terms .. this was a dual Bankruptcy .. the new GN was formed in the chapter 11 and spun away with all the good assets
owned primarily by the government ( The U.S. government would own 60 percent of the new GM; the Canadian government would have a 12.5 percent; the United Auto Workers would own 17.5 percent, with 10 percent left for the unsecured bondholders)

the old GM (MTLQQ) the one you own - was put into chapter 7 for liquidation ( all old debts and bad assets )

go back and read my very first postings.. I explained what type of BK this was .. On July 5, 2009, an order was entered approving the sale of substantially all of the Initial Debtors’ assets to a new and independent company (now known as General Motors Company) under section 363 of the Bankruptcy Code. The sale closed on July 10, 2009.

common share holders are always LAST in line to get paid .. there will be NO money left over for common share holders once the BK is over

From GM ...

Management continues to remind investors of its strong belief that there will be no value for the common stockholders in the bankruptcy liquidation process, even under the most optimistic of scenarios. Stockholders of a company in chapter 11 generally receive value only if all claims of the company's secured and unsecured creditors are fully satisfied. In this case, management strongly believes all such claims will not be fully satisfied, leading to its conclusion that the common stock will have no value.

[dibbley]

I understand MTLQQ has only 10% share in GM and mission of this company is sale assets to satisfy claims of the creditors.
I never heard about chapter 7 - i heard only about §11 ;) but I do not understand USA law system.

By my opinion liquidation doesn't mean canceling of company. See http://www.blurtit.com/q682033.html
I read all your old comments and you will be probably right - shareholders should be wipped out and company will ends.
But try imagine this scenario.
MTLQQ has a lot of assets and plants. Cleanup work are runnning at this factories and in USA is big demand for manufacture sites from new electric car makers. For example this is brief list of companies
http://cbelectriccar.com/blog/electric-car-makers/top-ten-electric-car-manufacturers-in-north-america/

MTLQQ can lease this factories and generate earnings from this activities. In future it might be very profitable company.
But if liabilities will be higher than assets it should have scenario as you posted.

Do you mean all trades since friday has only speculation character? Volumes are really great and price grows.
I still think if some company buy share in MTLQQ it should be cheapest way how to start car production. But maybee I am absolutely wrong.

[puppydotcom]

many people did not understand the difference in the companies ... the old GM is in chapter 7 = total liquidation

the new Gm has ZERO to do with this stock ticker MTLQQ

plus there were many misleading comments and web sites hyping this stock

If you go back and read my & some others who posted .. you will see what we tried to explain ' whats going on ..

no problem with people trading it ..

just commons are getting wiped out and the people who still hold .. are out 100% when the BK gets discharged and/or the stock canceled

[dibbley]

and volume is awesome - it will be rocket !!!

[dibbley]

I dont understand why stock price grow up when they are planning "the cancellation of old GM's 610 million shares of stock."

Why old shareholders can not receive stocks of new GM as the other creditors and bondholders ?!?!?!?

[puppydotcom]

MTLQQ stock being canceled ..

Judge plans to OK end of old GM
Most objections rejected as sale of last assets readied


New York— A federal bankruptcy judge said Thursday he would approve a plan to liquidate the remnants of 102-year-old General Motors Corp. — a milestone in the restructuring of the U.S. auto industry.

"This plan will be confirmed," said Judge Robert E. Gerber after a day-long hearing — just under 21 months after the company sought bankruptcy protection.


Gerber said he will issue a written opinion in the next few days and may make some small tweaks.

The plan's confirmation date should be around March 31, clearing the way for the distribution of stock to some creditors early next month and the cancellation of old GM's 610 million shares of stock.

Creditors have submitted $29.5 billion in verified claims and are to get $5 billion in new GM stock and warrants equal to 15 percent of the company's stock.

How much money they recover will depend on the performance of the new stock.

Stephen Karotkin, a lawyer for old GM, noted the June 2009 bankruptcy filing led to "GM's rebirth" and "the continued employment of tens of thousands of people worldwide. We think that's a testament to the value and flexibility of our bankruptcy system."

The announced liquidation plan approval "brings to a close, we hope, a very successful administration" of the bankruptcy, Karotkin said.

Earlier in the day, Gerber approved the creation of a $773 million environmental trust to oversee the cleanup and sale of 89 former General Motors properties in 14 states.

He rejected a request from Salina, N.Y., for cleanup funds for sites near a former GM site. He also turned down a request by a group of hedge funds that held bonds from GM Nova Scotia for early distribution of their new GM stock.

The announced approval means old GM — now known as Motors Liquidation Co. — will go out of the business in the next few months.

In addition, the U.S. Attorney's Office said it is still in talks with old GM over other environmental claims — and that the government may recover additional money to pay for other cleanup.

The plan includes $536 million in direct cleanup money as well as $300 million to cover property taxes, demolition costs, plant security and other expenses.

The plan will help clean the polluted vestiges of Buick City, Pontiac Assembly and Willow Run, among other plants. The program includes $161 million for restoring 47 sites in 14 Michigan communities. Many are along the Interstate 75 corridor — the backbone of Michigan manufacturing — in cities such as Detroit, Flint, Saginaw and Bay City.

The former GM-Toyota Motor Corp. joint venture in Fremont, Calif. — New United Motor Manufacturing Inc. — agreed to withdraw its objection to the liquidation plan.

The U.S. government, which gave GM a $49.5 billion bailout and still owns 33 percent of new GM, urged approval of the plan. "The plan is overwhelmingly beneficial to the nation and to the creditor(s)," said Assistant U.S. Attorney David Jones.

"It honors the commitment that the United States made to fund the proper wind down of the old GM's non viable assets, following the hugely successful launch of new GM."

He said a quick resolution is needed "so creditors could get paid" and "taxpayers of the United States can stop bearing the extraordinary and ever growing expense of running a complex unresolved Chapter 11 proceeding."

The Canadian and Ontario governments gave GM a separate $9.5 billion bailout and they also urged approval of the plan.

[puppydotcom]

yup... the old GM is now just a memory .. all common share holders got ZERO!!!

[MorningLightMountain]

talk about a long, drawn out death......wasn't GM once the world's largest Co, way back when??

what a fall from grace.....

[puppydotcom]

Old GM comes to end of road
Liquidation plan OK expected; includes pollution cleanup

New York— The end is near for the remnants of the 102-year-old General Motors Corp.

A federal bankruptcy judge is expected to give final approval today to the liquidation plan of the "Old GM," known officially as Motors Liquidation Co. It will mean some compensation for bondholders who lost billions in the bankruptcy and clear the way for a massive environmental reclamation program at polluted GM sites.

"It's time to bury the past and it put it away, said David Cole, chairman emeritus of the Center for Automotive Research in Ann Arbor and son of a former GM president.

"As long as an old GM is around, it's going to cause a memory of a past era. The symbolism is really quite important. We need to move on with the future."

Today's hearing before Judge Robert Gerber comes almost 21 months since the Detroit automaker filed for bankruptcy in the same court, as part of a $50 billion government bailout and restructuring.

The new GM was created from some of the "good" assets of the old GM, as a government-sponsored company. It emerged in July 2009 after just 40 days in bankruptcy.

Because the automaker uses the same facilities, trademarks and websites, most people have little idea that today's GM is less than 2 years old as a new company. Its stock was publicly traded for the first time in November.

The new GM was able to leave behind tens of billions of dollars in liabilities from asbestos claims, environmental claims and unpaid bills and loans.

Before approving the liquidation plan, Gerber must first hear objections. Outstanding issues include the extent of environmental cleanup in upstate New York, objections lodged by major hedge funds owning former GM Nova Scotia bonds and claims by GM's former joint venture with Toyota in Fremont, Calif.

In December, the old GM reached a deal with Indiana, Ohio, Iowa and Wisconsin and agreed to use $25 million to clean six priority sites in those states.
Creditors get $5B in stock

With the judge's approval, bondholders of the old GM and other creditors will receive a 10 percent stake in the new GM, known as General Motors Co. Unsecured creditors overwhelmingly approved the liquidation plan last month.

Under the liquidation plan, creditors will receive 150 million shares of new GM stock, worth about $5 billion.

If the plan is approved today, Old GM plans to distribute about 70 percent of the shares to creditors — where there is no dispute over how much they are owed — around April 1.

That group includes bondholders who lost more than $20 billion when the company defaulted on its loans.

The remainder of shares will be distributed in a few months as the final claims are resolved. Creditors are also entitled to warrants to buy shares equal to 15 percent of the shares in the new GM.

Creditors, in a few months, could get another 2 percent stake in GM if total claims top $35 billion.

Over the past two years, many Wall Street traders have bought GM bonds as a way of investing in the new GM.

Old GM investors and creditors "have a big stake in new GM's turnaround — since the higher the stock price is, the more they will recover," said Cole, who is an Old GM bondholder.
Factories still being sold

For the first year after bankruptcy, about two dozen people — operating out of temporary space at the Renaissance Center in Detroit— worked to sell off plants, equipment and other Old GM assets.

The remaining employees moved to a smaller office in Birmingham a few months ago.

Old GM is still working to sell off former GM factories and to sell a former property in West Mifflin, Pa.

It found uses for some properties, including a former GM plant in Delaware that was sold to electric vehicle startup Fisker Automotive. It sold a former GM plant in Pontiac that will house an $80 million movie studio — Raleigh Michigan Studios — that's opening this spring.

Tim Yost, a spokesman for the old company, said it will take a few months for Motors Liquidation to completely go out of business.

The company said in a filing it won't exist beyond Dec. 15, at the latest.

[puppydotcom]

Old GM creditors approve liquidation plan
Bankruptcy judge could approve asset closeout Thursday

Washington— The vast majority of General Motors Corp.'s creditors have agreed to a plan to liquidate the company's leftover assets, according to documents filed Friday in U.S. bankruptcy court.

Creditors holding nearly $18 billion in claims — more than 85 percent — approved the liquidation plan for the company known as "old GM."

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Creditors opposed hold $3.1 billion. In terms of actual voters, 85,185 — or 96.7 percent — approved the plan, while 3.3 percent opposed it.


Best assets bought

Detroit-based General Motors Co. was formed by the government-backed purchase of the old GM's best assets in July 2009 as part of the Treasury Department's $49.5 billion bailout.

The creditors' decision sets the stage for a U.S. bankruptcy judge to approve the liquidation plan for the old GM on Thursday. The move will clear the way for a nearly $800 million environmental cleanup plan and the distribution of shares of new GM stock and warrants to the former bondholders of the old company.

Aaron Bragman, an auto analyst at IHS Global, said creditors didn't have much of a choice in approving the liquidation plan. "This is the best deal they are going to get and they are lucky to get it, given what would have happened in an uncontrolled GM bankruptcy," he said.

Going out of business

Old GM, which is now known as Motors Liquidation Co., is set to go out of business in as early as a month.

U.S. Bankruptcy Judge Robert Gerber must still consider a series of objections, including two related to the former Toyota Motor Corp.-GM venture in Fremont, Calif.

Toyota initially sought $3.2 million for product liability claims, while the former joint venture filed a $500 million claim against old GM's assets, but both are seeking to boost their claims.

[puppydotcom]

final wind-down bankruptcy in place - last chance to bail

GM bankruptcy plan improperly treats debt, toxins, creditors say
Tiffany Kary / Bloomberg News

Creditors of General Motors Corp.'s unwanted businesses opposed a final wind-down bankruptcy plan because they say it improperly treats $1.3 billion in debt and doesn't account for environmental cleanup costs in two states.

Hedge funds holding notes in Motors Liquidation Co.'s Nova Scotia unit filed objections to the plan today in Manhattan bankruptcy court, where a confirmation hearing is scheduled for March 3. Onondaga County, New York, and the California Department of Toxic Substances Control also filed objections.

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When GM filed for bankruptcy in June 2009, it sold some assets to a newly formed company that has since gone public. Unwanted properties were left under bankruptcy protection. An outline of the terms of a plan for so-called Old GM was approved by the bankruptcy court Dec. 7.

Under an agreement designed to prevent GM Canada from also filing for bankruptcy, General Motors Nova Scotia Finance Co. relieved GM Canada of $1.3 billion in intercompany loans before the U.S. bankruptcy filing. Appaloosa Management LP, Aurelius Capital Management LP, Elliott Management Corp. and Fortress Investment Group LLC, holders of notes in General Motors Nova Scotia Finance, said the sale was used to wrongly avoid paying $1.3 billion in debt.
Initial Distributions

The debtors "are seeking, through the plan, to deprive the Nova Scotia Noteholders and the Nova Scotia Trustee of entitlement to any initial distributions under the Plan," the funds said in their filing.

Onondaga County said the plan doesn't give accurate cost estimates or other information about polychlorinated biphenyls from a facility in Salina, N.Y., adjacent to Ley Creek, where it flows into Onondaga Lake. PCBs are organic compounds that the U.S. Environmental Protection Agency says have been demonstrated to cause cancer.

In its objection, the California Department of Toxic Substances Control said it has environmental claims for three sites in the state. The bankrupt businesses are liable to the agencies for the ongoing pollution from the sites, the agency said.

The case is In re Motors Liquidation Co., 09-50026, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

From The Detroit News: http://detnews.com/article/20110211/AUTO01/102110445/GM-bankruptcy-plan-improperly-treats-debt--toxins--creditors-say#ixzz1DlK1VRdw