Motors Liquidation Company

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Here is a sample Question and Answer document that helps explain Motor Liquidation...

MOTORS LIQUIDATION COMPANY

INVESTOR FAQ
Q. What is Motors Liquidation Company? How does it relate to GM?
A. After it sold substantially all of its assets in the section 363 sale to General Motors Company to create the “new GM,” General Motors Corporation was renamed “Motors Liquidation Company.” For the operations, assets and liabilities that were not transferred to General Motors Company,” the chapter 11 bankruptcy case will continue in order to resolve creditors’ claims and wind down those operations in an orderly way.

Q. I have noticed recent changes in the stock price and trading volume. What’s happening?
A. Management continues to remind investors of its strong belief that there will be no value for the common stockholders of Motors Liquidation Company in the bankruptcy liquidation process, even under the most optimistic of scenarios. Stockholders of a company in chapter 11 generally receive value only if all claims of the company's secured and unsecured creditors are fully satisfied. In this case, management strongly believes all such claims will not be fully satisfied, leading to its conclusion that the common stock of Motors Liquidation Company will have no value.

Q. I want to sell my remaining shares. How will the common stock be traded going forward?
A. Since the common stock is not traded on the NYSE and soon be delisted, market makers not affiliated with us may conduct limited trading on the Over-the-Counter Bulletin Board (OTCBB) and/or the Pink Sheets even while we are involved in a liquidation process under chapter 11. We will not be involved in initiating or supporting trading on the OTCBB or the Pink Sheets. Management continues to remind investors of its strong belief that there will be no value for the common stockholders of Motors Liquidation Company in the bankruptcy liquidation process, even under the most optimistic of scenarios. You should contact your broker for further information.

Q. What will happen to my current stock and bond holdings? Will I receive General Motors Company stock?
A. All of the publicly owned stocks and bonds previously issued by General Motors Corporation are still securities of that company, which has been renamed “Motors Liquidation Company,” and will be treated in accordance with the provisions of the U.S. Bankruptcy Code and the rulings of the Bankruptcy court. None of Motors Liquidation Company’s publicly owned stocks or bonds (including the common stock that formerly traded on the NYSE under the ticker “GM”) are or will become securities of General Motors Company, which is an independent separate company.

Q. Why can't stockholders file claims with the court?
A. Stockholders do not receive a claim because they are owners of the company, not its creditors. Generally in a bankruptcy, all secured and unsecured claims of creditors would have to be fully satisfied first for stockholders to recover any value. Motors Liquidation Company management strongly believes that this will not occur here, and that the common stock will have no value.

Q. How can bondholders and other unsecured creditors better understand the bankruptcy process and status of the proceedings?
A. The office of the United States Trustee has appointed the statutory Unsecured Creditors Committee (the “UCC”), which is charged with representing all unsecured creditors in the proceedings (including unsecured bondholders). Questions for the UCC should be directed to its attorneys, who can be reached at:
Kramer Levin Naftalis & Frankel LLP
1177 Avenue of the Americas
New York, New York 10036
Telephone: (212) 715-3275
Facsimile: (212) 715-8000
Thomas Moers Mayer
Kenneth H. Eckstein
Robert T. Schmidt
Adam C. Rogoff
Gordon Z. Novod

Q. Will I be receiving interest payments on my notes/bonds?
A. It is very unlikely that cash interest payments will be made on Motors Liquidation Company securities. All parties, including bondholders, will be treated in accordance with the provisions of the U.S. Bankruptcy Code and the rulings of the Bankruptcy court.

Q. What will happen to my “preferred shares”?
A. Motors Liquidation Company does not have any preferred stock, although many investors mistakenly use that term to refer to several series of convertible debentures that the company issued. These securities are actually series of unsecured bonds, and will be treated similarly to other unsecured bonds in the court proceedings.

Q. Where can I go to get more information on the bankruptcy proceedings?
A. Additional information, including court documents, can be found on the bankruptcy court docket at http://www.motorsliquidationdocket.com.

Q. Where can I go to get more information on Motors Liquidation Company?
A. Information may be found on the company’s website, http://www.motorsliquidation.com or by calling 800-414-9603 or emailing motorsliquidation@alixpartners.com.
Mailing address for Motors Liquidation Company Fulfillment Center:
Motors Liquidation Fulfillment Center
c/o AlixPartners, LLP
2100 McKinney Avenue, Suite 800
Dallas, Texas 75201

Q. Where can I find more information about General Motors Company?
A. Please refer to General Motors Company’s website, http://www.gm.com.

Article Courtesy: http://graphics8.nytimes.com/packages/pdf/gmliquidation.pdf
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