Motors Liquidation trusts to fund expenses through $40.23 million sale

By Caroline Salls

Pittsburgh, March 14 - Motors Liquidation Co.'s GUC Trust administrator received court approval to sell new General Motors securities for an expected $40.23 million of cash proceeds, according to an 8-K filed on March 14 with the Securities and Exchange Commission.

The trust plans to keep $26.52 million of the proceeds to fund fees, costs and expenses of the GUC Trust. The remaining proceeds will be transferred to an avoidance action trust to pay the fees, costs and expenses of that trust.

According to the 8-K, the administrator also originally requested court approval to transfer new GM securities to the avoidance action trust from the GUC trust to fund potential future tax liabilities.

However, that motion was withdrawn in February, as was a motion for an amendment to the avoidance action trust agreement.

Motors Liquidation was formerly General Motors, a Detroit-based automaker that 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. Motors Liquidation's Chapter 11 case number is 09-50026.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.