By Jared A Levy
MTLQQ – “Motors Liquidation Company” – is the somewhat cumbersome ticker symbol for the entity that was set up to liquidate General Motors’ assets in bankruptcy. It is in no way shape or form connected to the “new GM” that will begin trading later this year. According to Reuters, this new GM will be dually listed on the New York Stock Exchange as well as the Toronto Stock Exchange between late October and Thanksgiving of this year.
The preliminary GM initial public offering (IPO) filings have taken place. This is expected to be a relatively large offering with some estimates above the $20 billion mark (although this is still unknown). The company will also reclaim the old “GM” symbol (naturally).
Understand that the IPO of this new entity is almost like bringing a new company public with only half a year of earnings data to consider. Since restructuring was complete, GM has released just two quarters of earnings data. Remember, this company was on a trajectory for complete failure before being saved by the U.S. government/taxpayers and others. There are arguments on both sides of this offering. Some are projecting success, while others think it couldn’t be a worse time to bring this company to market.