Old GM, Ready to Liquidate by Mid-2010

The leftovers American manufacturer GM left behind, united under the Motors Liquidation name, will be ready for liquidation by mid-2010, according to Al Koch, the man in charge with the company. At that time, Motors Liquidation will be ready to distribute its holdings of 'new GM' stock and warrants to unsecured creditors, Reuters reported. Still, this will not be an easy task, according to Koch.

"The assets that I have and that my team has to liquidate are pretty challenging," Koch said. "The properties that we have to dispose of are so large, that it's going to be very difficult to find users for them, and many of them have some environmental remediation that's required."

According to the latest estimates, the creditors may file claims amounting to some 30 to 40 billion dollars, far more than the estate left behind by the manufacturer is worth.

The Old GM has some 200 properties, with nearly half of them leased to the new GM for use in current operations. In addition to the plant sites and landfills, the company has around 5,000 robotic machines and tools on the respective properties. Old GM expects however to have difficulties in finding buyers for the respective assets.

Motors Liquidation was spun off from GM in July, as a result of the approval received by GM for the sale of its assets. As a result of the sale, GM was split into General Motors Company, comprised of the company's strongest operations and Motors Liquidation.