Shares of old GM resume trading
Written on July 17, 2009
Motors Liquidation Co. shares plunged as the bankrupt company, stripped of the assets that make up the new General Motors Co., resumed trading after regulators lifted a halt imposed on July 10.
Motors Liquidation tumbled 52 percent to close at 55 cents in over-the-counter trading in New York.
General Motors Co., a new company majority-owned by the U.S. government, emerged from the remains of the bankrupt General Motors Corp. last week by taking over the best assets of the nation’s biggest automaker. The original entity was renamed Motors Liquidation. The Financial Industry Regulatory Authority and Securities and Exchange Commission warned Tuesday against investing in Motors Liquidation health insurance plans.
"While the common stock of Motors Liquidation has not been cancelled, investors should not interpret that as indicating the shares have any value," Finra and the SEC said in a statement.
Motors Liquidation owns 16 abandoned plants, including contaminated factory sites, and a nine-hole golf course in New Jersey. Those will be disposed of by the bankruptcy estate.
Filed in: online.