Motors Liquidation Company bankruptcy website is evidence of the automotive industry crisis of 2008-2010, caused in part by the confluence of the global financial turndown of the late-2000s recession, record oil prices, a severe global automotive sales decline due to the global financial crisis of 2008--2009. This collection of archived websites contains court documents and a claims register for the company left to settle past liability claims from General Motors Chapter 11 reorganization, and is arranged in a single series, Archived Websites.
Motors Liquidation Company, formerly General Motors Corporation, was the company left to settle past liability claims from General Motors Chapter 11 reorganization.
On June 1, 2009, General Motors Corporation and some of its subsidiaries filed for bankruptcy protection in the United States Bankruptcy Court for the Southern District of New York. General Motors' attorneys preferred to file in the federal courts in New York because of their reputation for expertise in bankruptcy. This was followed swiftly by press conferences by General Motors' Chief Executive Officer, Fritz Henderson, who outlined a plan for NGMCO, Inc. ("New GM") and stressed that he intended for the process to move quickly, and President of the United States Barack Obama, who presented a rescue plan.
In the bankruptcy case, In re General Motors Corp., case number 09-50026 in the Southern District, Manhattan, New York, General Motors was represented by Weil, Gotshal and Manges, a specialist law firm in New York and was declared to be a debtor in possession. The United States Treasury and an ad hoc group of the bondholders of General Motors Corporation were also represented in court. After voiding the leases on seven corporate jets and a corporate aircraft hangar, on June 1, 2009, the court gave interim approval to GM's request to borrow $15 billion as debtor-in-possession financing, the company having only $2 billion cash in hand. The United States Treasury would be the source of that debtor in possession funding.
Later that year, General Motors' good assets were sold to NCGMO, Inc. ("New GM"), a company that had been formed by the United States government with a 60% stake and others. "Old GM" was renamed Motors Liquidation Company. On July 10, 2009, the purchase of the ongoing operational assets--with the exception of Hummer, Saturn and Saab--and trade name of "old GM" was completed and NGMCO Inc. changed its name to "General Motors Company LLC" after the purchase.
Motors Liquidation Company exited bankruptcy on March 31, 2011 only to be carved into four trusts; the first to settle the claims of unsecured, the second to handle environmental response for Motors Liquidation Company's remaining assets, a third to handle present and future asbestos-related claims and a fourth for litigation claims.
