Motors Liquidation trust: Distribution stay hearing set for Sept. 22

By Caroline Salls

Pittsburgh, Sept. 17 – The Motors Liquidation Co. GUC Trust said that the hearing on a requested stay of interim trust distributions to holders of contingent beneficial interests has been postponed to Sept. 22, according to an 8-K filed Thursday with the Securities and Exchange Commission.

As previously reported, the stay was requested by plaintiffs in recall-related litigation while appeals and cross-appeals of the U.S. Bankruptcy Court for the Southern District of New York’s decision on a motion to enforce the sale order in the recall litigation are pending.

The stay hearing was postponed to give the parties more time to discuss a potential global resolution of all disputes related to the recall litigation and the appeals.

If no stay is imposed by the bankruptcy court, the trust said its administrator expects the trust to be in a position to make a $135 million distribution to unitholders around mid-November and to make a $109 million distribution to unitholders in either early 2016 or November 2016, depending on future determinations to be made by the trust administrator.

Motors Liquidation, formerly General Motors, is 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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