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.
AI
