Motors Liquidation Company GUC Trust (OTCMKTS:MTLQU) Files An 8-K Other Events
Item8.01.
| Other Events. |
As previously disclosed on November10, 2016 in a Quarterly Report
on Form 10-Q of the Motors Liquidation Company GUC Trust (the
GUC Trust), certain plaintiffs in actions
relating to the recall of vehicles manufactured by General Motors
Corporation, n/k/a Motors Liquidation Company (together with its
consolidated subsidiaries, Old GM) for ignition
switch and other defects appealed certain threshold decisions
(the Threshold Issues Decision) made by the
United States Bankruptcy Court for the Southern District of New
York (the Bankruptcy Court) in the United States
Court of Appeals for the Second Circuit (the Second
Circuit) in In re Motors Liquidation Co., Nos.
15-2844, 15-2847, 15-2848 (the Appeal). As
previously disclosed on July18, 2016 in a Current Report on Form
8-K of the GUC Trust, on July13, 2016, the Second Circuit reached
a decision on the Appeal (the Second Circuit
Opinion), including a decision to vacate the Bankruptcy
Courts holding that barred certain claims against the GUC Trust
in those actions.
Following the rendering of the Second Circuit Opinion, further
related proceedings were remanded to the Bankruptcy Court. On
December13, 2016, the Bankruptcy Court entered an Order to
Show Cause Regarding Certain Issues Arising from Lawsuits with
Claims Asserted Against General Motors LLC (New GM) That Involve
Vehicles Manufactured by General Motors Corporation (Old GM)
(the Order to Show Cause). Also on December13,
2016, New GM filed a Petition for Writ of Certiorari
(the Cert Petition) with the Supreme Court of
the United States of America (the Supreme
Court), asking the Supreme Court to review the Second
Circuit Opinion. The Order to Show Cause and the Cert Petition
are discussed further below.
Background
In July 2009, New GM purchased assets (the 363
Sale) from Old GM to a Bankruptcy Court order relying on
Section363 of the Bankruptcy Code (the Sale
Order) under which certain product liability and
property damage claims were barred against New GM, as the
successor corporation, where such claims arose before July9,
2009, the closing date of the 363 Sale.
Following New GMs recall of vehicles for ignition switch and
other defects throughout 2014, hundreds of lawsuits were filed.
Plaintiffs in those suits included those who had suffered
pre-closing injuries allegedly arising from the ignition switch
defect (the Pre-Closing Accident Plaintiffs),
plaintiffs who had suffered post-closing injuries allegedly
arising from the ignition switch defect (the Post-Closing
Accident Plaintiffs) and plaintiffs who sought damages
for alleged economic losses arising from the ignition switch
defect and other defects in Old GM vehicles (the Economic
Loss Plaintiffs). New GM sought to enjoin those lawsuits
by filing motions in the Bankruptcy Court to enforce the Sale
Order. The Bankruptcy Court, in the Threshold Issues Decision,
determined certain threshold issues related to the motions to
enforce the Sale Order. The Threshold Issues Decision was
appealed to the Second Circuit, which
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affirmed in part, reversed in part, and remanded in part for
further proceedings before the Bankruptcy Court.
Order to Show Cause
On December13, 2016, the Bankruptcy Court entered the Order to
Show Cause, which details five issues (the 2016 Threshold
Issues) that will be determined by the Bankruptcy Court
as a method of advancing litigation related to the ignition
switch defects in an orderly fashion. The 2016 Threshold Issues
consist of the following:
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First Threshold Issue: Whether the Bankruptcy Courts Threshold Issues Decision, and subsequent decision reported at 541 B.R. 104 (Bankr. S.D.N.Y. 2015) (together with the Threshold Issues Decision, the Prior Decisions) are applicable to only Economic Loss Claimants whose claims derive from defects associated with NHTSA Recall No.14v047, or whether the Prior Decisions are also applicable to Economic Loss Claimants whose claims derive from other, later, recalls. (The plaintiffs that are determined, to this First Threshold Issue to be the subject of the Prior Decisions are referred to herein as the Ignition Switch Plaintiffs. Plaintiffs that are determined to not be the subject of the Prior Decisions are referred to herein as the Non-Ignition Switch Plaintiffs.) |
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Second Threshold Issue: Whether Non-Ignition Switch Plaintiffs asserting economic loss claims based solely on New GMs independent conduct after the closing of the 363 Sale (1)are entitled to assert such claims against New GM, (2)are barred from bringing such claims to the extent they did not appeal the Prior Decisions, or (3)are barred from bringing such claims because they are not truly independent claims. |
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Third Threshold Issue: Whether the portion of the Second Circuit Opinion relating to purchasers of used cars manufactured by Old GM after the 363 Sale permits such plaintiffs to assert all claims against New GM, or whether such claims are limited to (a)used car purchasers who appealed the Bankruptcy Courts Prior Decisions, and/or (b)claims that are based solely on New GMs independent conduct after the closing of the 363 Sale. |
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Fourth Threshold Issue: Whether Post-Closing Accident Plaintiffs are bound by the Sale Order, or whether they may bring successor liability claims against New GM and seek punitive damages in connection therewith notwithstanding a contrary decision by the Bankruptcy Court in November 2015. |
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Fifth Threshold Issue: Whether the Ignition Switch Plaintiffs and/or Non-Ignition Switch Plaintiffs satisfy the requirements for authorization to file late proof(s) of claim against the GUC Trust and/or are such claims equitably moot (the Late Proof of Claim Issue). |
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The Order to Show Cause provides that briefing with respect to
the 2016 Threshold Issues (other than the Late Proof of Claim
Issue) will commence on February27, 2017 and close on April7,
2017, with oral argument to be heard by the Bankruptcy Court on
April20, 2017 at 9:00 a.m. (such dates and times subject to
change).
With respect to the Late Proof of Claim Issue, the Order to Show
Cause provides that Brown Rudnick LLP (on behalf of certain
Economic Loss Plaintiffs) and Goodwin Procter LLP (on behalf of
certain Pre-Closing Accident Plaintiffs) will file separate
motions (Late Claim Motions) seeking authority
to file late proofs of claim against the GUC Trust by no later
than December22, 2016. Other plaintiffs who wish to join in the
Late Claim Motions shall be entitled to file a letter with the
Bankruptcy Court by January6, 2017.The Order to Show Cause
further provides that the Bankruptcy Court shall hold a status
conference on January12, 2017 at 9:00 a.m. (such dates and times
subject to change) to address any issues arising from the Late
Claims Motions, including (i)whether discovery is necessary with
respect to the Late Claim Motions, (ii)if discovery is necessary,
the appropriate parameters of such discovery, and (iii)an
appropriate briefing schedule for the Late Claim Motions,
including deadlines for objections and replies.
The Order to Show Cause provides that any person objecting to the
procedures set forth in the Order to Show Cause must file an
objection with the Bankruptcy Court no later than 20 days
following the date of the Order to Show Cause. A copy of the
Order to Show Cause is furnished as Exhibit 99.1 to this Form
8-K.
Cert Petition
On December13, 2016, New GM filed its Cert Petition with the
Supreme Court. The Cert Petition was docketed on December15,
2016, as case number 16-764. Responses to the Cert Petition are
due by January16, 2017. There is no formal date by which the Cert
Petition must be granted or denied.
| Item9.01 | Exhibits. |
|
ExhibitNo. |
Description |
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| 99.1 | Order to Show Cause |
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About Motors Liquidation Company GUC Trust (OTCMKTS:MTLQU)
Motors Liquidation Company GUC Trust (OTCMKTS:MTLQU) Recent Trading Information
Motors Liquidation Company GUC Trust (OTCMKTS:MTLQU) closed its last trading session up +0.10 at 11.00 with 7,803 shares trading hands.
