Net Assets in Liquidation

3 Months Ended

Jun. 30, 2012

Net Assets in Liquidation [Abstract]

Net Assets in Liquidation

3. Net Assets in Liquidation

Description

Under the GUC Trust Agreement and the Plan, as described more fully in Note 1, the beneficiaries of the GUC Trust are current and future holders of Allowed General Unsecured Claims and GUC Trust Units (“Trust Beneficiaries”). Certain assets of the GUC Trust are reserved for funding the expected costs of liquidation and potential tax liabilities and are not available to the Trust Beneficiaries. Other assets of the GUC Trust, primarily Holdings of New GM Securities, as described in Notes 1 and 5, are available to be distributed to the Trust Beneficiaries (“GUC Trust Distributable Assets”) in accordance with the Plan. The net assets in liquidation, presented in the accompanying condensed statement of net assets in liquidation (liquidation basis) at June 30, 2012, corresponds to the amount of GUC Trust Distributable Assets as of June 30, 2012.

Trust Units

As described in Note 1, each holder of an Allowed General Unsecured Claim will retain a contingent right to receive, on a pro rata basis, additional shares of New GM Common Stock and New GM Warrants (if and to the extent such shares of New GM Common Stock and New GM Warrants are not required for the satisfaction of previously Disputed General Unsecured Claims or liquidation for the payment of the expenses or tax liabilities of the GUC Trust) and cash, if any, remaining at the dissolution of the GUC Trust. The GUC Trust issues units representing such contingent rights (“GUC Trust Units”) at the rate of one GUC Trust Unit per $1,000 of Allowed General Unsecured Claims to each holder of an Allowed General Unsecured Claim, subject to rounding pursuant to the GUC Trust Agreement, in connection with the initial recognition of each Allowed General Unsecured Claim.

The GUC Trust makes quarterly liquidating distributions to holders of GUC Trust Units to the extent that certain previously Disputed General Unsecured Claims asserted against the Debtors’ estates are either disallowed or are otherwise resolved favorably to the GUC Trust (thereby reducing the amount of GUC Trust assets reserved for distribution in respect of such asserted claims) and the amount of Excess GUC Trust Distributable Assets (as defined in the GUC Trust Agreement) as of the end of the relevant quarter exceeds thresholds set forth in the GUC Trust Agreement.

The following presents the total GUC Trust Units which the GUC Trust issued or was obligated to issue as of June 30, 2012:

	Trust Units
Total units outstanding or issuable at March 31, 2012		30,036,945
Units issued during the quarter ended June 30, 2012		113,112
Less: Units issuable at March 31, 2012		(113,114	)
Add: Units issuable at June 30, 2012		121,652
Total units outstanding or issuable at June 30, 2012		30,158,595

Allowed and Disputed Claims

The total cumulative pro rata liquidating distributions ultimately received by Trust Beneficiaries is dependent upon the current amount of Allowed General Unsecured Claims and final resolution of outstanding disputed general unsecured claims, which reflect liquidated disputed claims and a Bankruptcy Court ordered reserve for unliquidated disputed claims (“Disputed General Unsecured Claims”) and potential Avoidance Action General Unsecured Claims (as described in Note 2). Disputed General Unsecured Claims at June 30, 2012 reflect claim amounts at their originally filed amounts and a court ordered distribution reserve for certain claims filed without a claim amount. The Disputed General Unsecured Claims may settle at amounts that differ significantly from these amounts and at amounts that differ significantly from the historical pattern at which claims have been settled and allowed in proportion to claims resolved and disallowed. Due to the nature of the claims resolution process and estimates involved, it is at least reasonably possible that these estimates could change in the near term. As described in Note 1, prior to the resolution and allowance of Disputed General Unsecured Claims (or potential Avoidance Action General Unsecured Claims), liabilities are not recorded for the conditional obligations associated with Disputed General Unsecured Claims. Liquidating distributions payable are recorded (at the fair value of New GM Securities to be distributed) as of the end of the period in which the Disputed General Unsecured Claims are resolved as Allowed General Unsecured Claims. Similarly, to the extent potential Avoidance Action General Unsecured Claims were to arise (and would become allowed) in the manner described in Note 2, liquidating distributions payable would be recorded for the New GM Securities (at fair value) that would become distributable to holders of Avoidance Action General Unsecured Claims upon such occurrence.

The following table presents a summary of the Allowed and Disputed General Unsecured Claims and potential Avoidance Action General Unsecured Claims for the quarter ended June 30, 2012:

(in thousands)	Allowed General Unsecured Claims		Disputed General Unsecured Claims			Avoidance  Action General Unsecured Claims		Maximum Amount of Unresolved Claims (1)			Total Claim Amount (2)
Total, April 1, 2012	$	30,036,882	$	5,205,266		$	1,500,000	$	6,705,266		$	36,742,148
New Allowed General Unsecured Claims		121,650		—			—		—			121,650
Disputed General Unsecured Claims resolved or disallowed		—		(882,736	)		—		(882,736	)		(882,736	)
Total, June 30, 2012	$	30,158,532	$	4,322,530		$	1,500,000	$	5,822,530		$	35,981,062

(1) Maximum Amount of Unresolved Claims represents the sum of Disputed General Unsecured Claims and Avoidance Action General Unsecured Claims.

(2) Total Claim Amount represents the sum of Allowed General Unsecured Claims and Maximum Amount of Unresolved Claims.