US: 'Old GM' files for bankruptcy exit
Motors Liquidation, 'old General Motors', has filed a plan with a US court to come out of bankruptcy.
If the plan is confirmed, substantially all of the company's assets and liabilities will be transferred to four trusts. The new plan also aims to distribute the company's 'new GM' stock and warrants to unsecured creditors, Reuters reported.
Motors Liquidation retained all of GM's old unwanted assets and liabilities after 'new GM' renamed General Motors Co - emerged from bankruptcy protection last year by completing a sale of its best assets such as Chevrolet and Cadillac to a new company funded by the US treasury.
Motors Liquidation presently owns 10% of General Motors common stock plus warrants exercisable for a further 15% of General Motors common stock on a fully diluted basis.
Motors Liquidation said it was targeting the first quarter of 2011 for the confirmation of the plan by the court.
The company also expected a majority of the unsecured claims to be resolved within two years of the plan being confirmed.