In an
8-K just released, GM has announced that it has liquidated two key employee benefit plans (the Savings-Stock Purchase Program and the Personal Savings Plan). The plan custodian State Street started selling the plan assets, consisting entirely of GM stock, on March 31 and reinvesting proceeds into fixed-income investments and money market funds. The plan liquidation is permitted if State Street determines one (or both) of the following: "
(A) there is a serious question concerning General Motors Corporation’s (“GM” or the “Company”) short–term viability as a going concern without resorting to bankruptcy proceedings; OR (B) there is no possibility in the short-term of recouping any substantial proceeds from the sale of stock in bankruptcy proceedings."
The liquidation is expected to have been completed by the end of business today, which likely explains the 8-K hitting SEC after market close. Looks like yet another slap in the face of GM employees, not to mention a glowing endorsement of the automaker's viability.
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