Former General Motors, Deutsche Bank reach stipulation settlement

By Lisa Kerner

Charlotte, N.C., Jan. 18 - Motors Liquidation Co., formerly General Motors Corp., reached a stipulation agreement with General Motors LLC, Wilmington Trust Co. and Deutsche Bank AG, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Under the agreement, Deutsche Bank will pay the debtors $11.5 million in cash and will pay General Motors LLC $2.5 million in cash.

In November 2009, Deutsche Bank sought relief from an automatic stay to effect a setoff of about $24 million that it claimed to be owed on bonds issued by General Motors, the filing said.

General Motors objected to Deutsche Bank's motion in June of 2010, and Wilmington Trust, as indenture trustee of certain bonds, filed its limited joinder to the cross-motion.

In September, the court authorized the debtors to enter into a stipulation of settlement that allocated the potential proceeds of the swaps between the debtors General Motors LLC.

The payments under the agreement will fully satisfy Deutsche Bank's debts to General Motors LLC and the debtors with respect to the swaps, according to the filing.

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

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