In Re Motors Liquidation Company

576 B.R. 325 (2017)

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Nature of the Case

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Facts

Ds are a group of Old GM's creditors who held a security interest in approximately $1.5 billion of Old GM's assets, with a perfected security interest resulting from a UCC-1 Statement filed in Delaware. The Delaware UCC-1 filing was terminated when a UCC-3 Termination Statement was mistakenly filed in Delaware. The court approved a sale of those assets under 1 U.S.C.S. § 363 but it had to be determined if they were fixtures and then also value them. Ds allege that at the time of the 363 Sale they held a perfected security interest in over 200,000 fixtures at GM plants because of twenty-six Fixture Filings in counties where disputed assets were located. Ds argue that these fixtures should be valued according to their replacement cost new less depreciation, as part of a going-concern business. Old GM's unsecured creditors dispute whether most of these assets are indeed fixtures, and if they were, it argues that they should be valued at their liquidation value. The Court directed the parties to designate forty representative assets to be the subject of this trial. It would issue an opinion regarding which assets are fixtures and how to value them. The parties could then sit and deal with the rest of the assets according to this guidance from the court.