Notice to Claimants – Motors Liquidation Company Amended Distribution Plan

If you have contacted GMRA regarding information you’ve received from The Garden City Group or MLC counsel Weil, Gotshal & Manges, GMRA is seeking general advice from legal counsel. [Click here to read full notice]

Apparently there are several legal notices being distributed by Garden City Group this week – claims’ objections, notice of approval of next steps in the case, as well as an overall solicitation package asking for a voting ballot to be returned for a March 3 confirmation hearing.

GMRA has not found an attorney to represent claimants and has no information from any claimants indicating they have prevailed in their claims to recover lost benefits in the bankruptcy (life, health, or other insurances).

From talking to various experts, it appears there is not much recourse for claimants, to our knowledge. A number of the claims have already been objected to and were expunged by the Court. Objections may continue to be filed and claims may continue to be expunged. GMRA cannot advise you of action to take. You can always consult with an attorney on your own and are encouraged to do so.

We have learned that The Official Committee of Unsecured Creditors (claimants for lost benefits are ‘unsecured’ creditors) recommends voting FOR the Plan. Apparently the recommendation is based on the thought that this is a good plan for unsecured creditors.

The Official Committee of Unsecured Creditors' Plan Support Letter:
Click here for a copy of The Official Committee of Unsecured Creditors' Plan Support Letter.

Excerpt from the letter:

The Creditors’ Committee, which represents the interests of all unsecured creditors in the Debtors’ chapter 11 bankruptcy cases, recommends that you vote FOR the Debtors’ Amended Joint Chapter 11 Plan (the “Plan”) by checking the box on your official Ballot that says: ACCEPT the Plan and returning your Ballot in accordance with the voting instructions described in the Ballot and the voting procedures order accompanying the amended disclosure statement with respect to the Debtors’ Plan (the “Disclosure Statement”) and the Plan.

Click here for related Court Order: http://www.motorsliquidationdocket.com/pdflib/8043_50026.pdf

Feel free to continue to check back for updates, as GMRA will make available information as we obtain it.