On August 31, 2010, Motors Liquidation Company filed its Joint Chapter 11 Plan with the Federal Bankruptcy Court for the Southern District of New York.
In addition, a number of rules exist to prevent one or more creditors from gaining an unfair advantage.
Voluntary liquidation refers to the process whereby the shareholders appoint a liquidator, who is then answerable to the creditors or shareholders.
It is not necessary to make any application to the court for this; however, the liquidator may apply to the court for directions and the court has power to remove a liquidator.
A voluntary liquidation may also by commenced by the board of directors if an event specified in the company's constitution has occurred.
On June 1, 2009, Motors Liquidation Company (formerly General Motors Corporation) and certain subsidiaries filed voluntary petitions for relief under chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. and Remediation And Liability Management Company, Inc., two direct subsidiaries of Motors Liquidation Company, filed voluntary petitions for relief under chapter 11 of the Bankruptcy Code on October 9, 2009.
An order was entered approving the sale of substantially all of Motors Liquidation Company’s assets to a new and independent company under section 363 of the Bankruptcy Code on June 5, 2009. Their chapter 11 cases are being jointly administered with Motors Liquidation Company’s chapter 11 proceedings for procedural purposes only under case number 09-50026 (REG).
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In exchange, New GM is required to reimburse the reasonable fees and expenses of the GUC Trust incurred in connection with certain legal proceedings related to the Potential Plaintiffs, and has agreed to discuss in good faith potential compensation for any related delays in future distributions from the GUC Trust.
This site contains public information about the Motors Liquidation Company GUC Trust, its activities and the methods by which the common stock of General Motors Company, and warrants to purchase General Motors Company common stock will be distributed to holders of Allowed Class 3 General Unsecured Claims.
This site will be updated as necessary to explain ongoing activity and to report status, including summary distribution updates.