Motors Liquidation looks to liquidate General Motors stock for costs

By Kali Hays

New York, Jan. 14 – Motors Liquidation Co. GUC Trust administrator Wilmington Trust Co. asked the U.S. Bankruptcy Court for the Southern District of New York for authorization to liquidate shares of common stock and warrants of General Motors Co. equal to $11.49 million to fund fees and expenses of the trust, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

Approximately $8.33 million of the dividends will be used to fund administrative costs through 2015 and $3.16 million will go toward reporting costs.

The trust said that after becoming “embroiled in litigation” related to recalls “it became apparent that the initial 2014 administrative costs budget could not withstand the growing legal and other administrative costs incurred,” according to the 8-K.

The company is also seeking approval of an extension of the GUC Trust through Jan. 14, 2016 or March 31, 2016 to allow for the resolution of additional litigation.

Motors Liquidation was formerly General Motors, a Detroit-based automaker that filed for bankruptcy on June 1, 2009. The new General Motors Corp. emerged from Chapter 11 on July 10, 2009. Motors Liquidation’s Chapter 11 case number is 09-50026.

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