General Motors Corp., 09-50026, U.S. Bankruptcy Court, Southern District, New York

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The case is In re General Motors Corp., 09-50026, U.S. Bankruptcy Court, Southern District, New York (Manhattan).

i have 50 common stock in gm. i just received 2 notices in the mail re 09-50026. i can't understand if i need to do something or not. i want to keep my stock if possible.

The bankruptcy court will notify you if you need to do anything. Not sure what the value of the stock now is after bankruptcy. Call your broker to discuss.

see below:


July 2, 2009
G.M. Stock Advice: Expect Zero Value
By JACK HEALY
Major corporations are not known to advise investors that their stock is essentially worthless. But on Wednesday, after several days of high-volume trading of General Motors shares, the automaker warned traders that its stock would have no value when it emerged from bankruptcy.

“G.M. management continues to remind investors of its strong belief that there will be no value for the common stockholders in the bankruptcy liquidation process, even under the most optimistic of scenarios,” G.M. said.

G.M. was delisted from the New York Stock Exchange after it filed for bankruptcy protection in June, but its stock has traded over the counter for more than $1 a share.

Investors holding common shares of General Motors are expected to be wiped out by the reorganization.

The shares are worthless--but see below...odd



July 11, 2009

Shares in “General Motors,” the company says, are worthless. But many investors apparently have missed the message.

G.M.’s stock, which now represents the company’s bankruptcy estate, continued an improbable rise in price on Friday, prompting concern by company officials and securities regulators that investors are confused.

The stock, which trades under the ticker symbol GMGMQ, gained as much as 43 percent on Friday, after G.M. announced that it had completed the sale of its assets to an entirely new company. Nearly 75 million shares traded hands until the securities industry’s self-regulator, Finra, halted trading at 2:09 p.m., citing “extraordinary events.”

The stock closed at $1.15 a share, up 31.3 cents, or 37 percent, for the day, giving the bankrupt company a market value of $702 million, up from $512 million on Thursday.

“This certainly has all the hallmarks of market manipulation, but it’s very hard for the S.E.C. to prove,” said Peter J. Henning, a law professor at Wayne State University in Detroit. “Someone made a lot of money here.”

G.M. has issued statements telling investors not to buy the shares because they are destined to become worthless.

The shares represent ownership in the old G.M., now known as the Motors Liquidation Company, which will be wound down in bankruptcy court. It contains unwanted factories and equipment, and billions of dollars in unsecured claims related to asbestos litigation and product liability lawsuits. Proceeds from the wind-down will go toward repaying secured and unsecured creditors.

The new G.M., formally the General Motors Company, is privately held and will not seek a public listing until next year at the earliest.

In a letter sent to the Securities and Exchange Commission on Thursday, lawyers for Motors Liquidation said they had gone to great lengths to discourage trading in the stock. The company said it “strongly believes that stockholders will receive no value in the bankruptcy liquidation process” and has cited the bankruptcy court’s decision, which calls the company “hopelessly insolvent,” several times in press releases and on its Web site.

For decades, G.M. traded on the New York Stock Exchange under the ticker GM. But after the company filed for bankruptcy on June 1, its listing moved to the over-the-counter bulletin board, becoming GMGMQ.

Finra decided to halt trading in the stock after concluding that investors thought they were buying shares of the new G.M. Over recent weeks, the regulator received numerous calls from brokerage firms and investors asking which company the securities represented, officials said.