Motors Liquidation trust administrator looks to sell shares, warrants

By Caroline Salls

Pittsburgh, Jan. 23 - Motors Liquidation Co. GUC Trust administrator Wilmington Trust Co. requested court approval to liquidate shares of common stock and warrants of General Motors Co. to fund liquidation and avoidance action trust fees, costs and expenses, according to an 8-K filed Monday with the Securities and Exchange Commission.

The administrator is also seeking court approval to transfer New GM securities to the avoidance action trust from the liquidation trust to fund potential future tax liabilities of the avoidance action trust.

According to the motion, the administrator held back excess trust distributable assets consisting of 1.2 million shares of new GM common stock, 1.1 million new GM $10.00 warrants and 1.1 million New GM $18.33 warrants from a third-quarter distribution.

Wilmington Trust said these held back securities reflect a reserve designed to cover expected trust fees, costs and expenses for 2011 through 2014.

Through Friday's motion, the administrator said it is looking to sell 554,923 shares of the New GM common stock, 504,475 $10.00 warrants and 504,475 $18.33 warrants to fund the accrued and projected costs, fees and expenses for 2011 and 2012.

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.

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