Former GM to distribute shares, warrants to creditors on April 21

By Caroline Salls

Pittsburgh, April 14 - Motors Liquidation Co. expects to distribute more than 75% of the shares of common stock and warrants it owns in General Motors Co. to unsecured creditors on April 21, according to a company news release.

The shares will be distributed under Motors Liquidation's plan of reorganization, which took effect on March 31.

For every $1,000 of allowed general unsecured claims, the unsecured creditors will receive 3.802187 shares, 3.456534 warrants to acquire shares at $10 per share and 4.456534 warrants to acquire shares at $18.33 per share.

Motors Liquidation said the distribution ratio with respect to holders of notes, bonds and debentures reflects the number of shares and warrants distributed per $1,000 of claims, not per $1,000 of face value of the notes.

In addition, the company said it has successfully negotiated the resolution of at least 97%, or $284 billion, of the $294 billion in claims filed against Motors Liquidation and some of its direct and indirect subsidiaries.

"Today's news marks yet another historic milestone in a case that's already destined for the history books," Motors Liquidation chief executive officer and AlixPartners LLP vice chairman Al Koch said in the release. "Distributing 75% of the securities this quickly is truly a remarkable accomplishment, something that many thought could never be done this fast.

"Also remarkable is being able to confirm that at least 97% of claims in this case have been resolved."

Motors Liquidation said it currently owns 10% of the total issued and outstanding shares, plus warrants that are exercisable for a further 15% of the shares. The company's interest includes 150 million shares, warrants to acquire 136.4 million shares at $10.00 per share, and warrants to acquire 136.4 million shares at $18.33 per share.

While the provides that transferrable units of a general unsecured creditor trust may be issued together with the distribution of the shares and the warrants, Motors Liquidation said the conditions required for the issuance of those units were not met, and therefore, trust administrator will not issue transferrable GUC trust units.

Holders of allowed general unsecured claims, however, will still have a contingent right to receive additional shares and warrants to the extent that they are not needed to satisfy subsequently allowed disputed general unsecured claims.

Motors Liquidation was formerly General Motors, 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, 2009, and Motors Liquidation's Chapter 11 case number is 09-50026.

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