Former General Motors eyes further four-month exclusivity extension

By Caroline Salls

Pittsburgh, Jan. 7 - Motors Liquidation Co., formerly General Motors Corp., requested a second extension to its exclusive periods to file a plan of reorganization and solicit votes on the plan, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The company wants to extend its exclusive plan-filing period to May 27 from Jan. 27 and the solicitation period to July 27, 2010 from March 29.

According to the motion, Motors Liquidation has continued to move expeditiously toward the formulation of a Chapter 11 plan, primarily in the development of strategies necessary to complete the plan process.

However, the company said it needs more time to prepare a confirmable plan.

"Notwithstanding the significant progress the debtors have made thus far, ongoing analyses of the assets and liabilities of the debtors must be completed before a confirmable Chapter 11 plan can be proposed and fully negotiated with the debtors' constituents," Motors Liquidation said in the motion.

In addition, the company said the current exclusivity period is not enough to analyze and reconcile claims and prepare a disclosure statement in a case of this size and complexity.

A hearing is scheduled for Jan. 20.

GM, a Detroit-based automaker, filed for bankruptcy on June 1, 2009 in the U.S. Bankruptcy Court for the Southern District of New York. The new General Motors Corp. emerged from Chapter 11 on July 10, and Motors Liquidation's Chapter 11 case number is 09-50026.

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