General Motors Bond Information
The new General Motors Company (GM) issues no stocks or bonds to the public. The old GM remains in bankruptcy proceedings with the new name Motors Liquidation Company (MLC). Individuals holding old GM bonds face the prospect of losing most of their investment as bondholders of MLC.
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Motors Liquidation Company
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No formal connection exists between the new GM, owned by the U.S. and Canadian governments and other partners, and MLC. The new GM has no responsibility for previously-issued bonds. Motors Liquidation Company filed for Chapter 11 bankruptcy on June 1, 2009. The bankruptcy court determines if bondholders in the old GM will receive any compensation.
Bondholders Information
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A portion of the equity in the new GM will be transferred to MLC. That equity may be distributed by the bankruptcy court to bondholders of the old GM when bankruptcy proceedings are finalized. The bankruptcy proceedings remain ongoing as of August 2010. The deadline for filing claims was Nov.30, 2009. Claims information is available at the Website of MLC or by email at claims@motorsliquidation.com. The phone number is (800) 414-9607.
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Recovery in the Bankruptcy Proceedings
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Bondholders in the old GM must await the final decision of the Bankruptcy Court. Interest probably will never be paid on the old GM bonds and bondholders may recover only a small part of the face value of their bonds, according to USA Today. Those holding bonds should check the Motors Liquidation Company Website for updates on the bankruptcy proceedings.
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