The bankruptcy filing by General Motors affected many investors. Unfortunately, the common shares of stock had no value after the GM bankruptcy reorganization was approved by the courts, However, the GM bondholders did receive some bankruptcy proceeds from Motors Liquidation Company in the form of four different securities on four distribution dates.
This presents a problem for bond investors who need to know their cost basis in the four new securities. Costbasis.com is here to help!
These four securities were received:
1. New GM common shares
2. Series A $10.00 warrants expiring 7/10/2016
3. Series B $18.33 warrants expiring 7/10/2019
4. GUC trust units
The securities were distributed on:
GM Bond Calculator
Click on the picture of the car to access the GM bond calculator. Just select the bond you owned and enter the par value, bond acquisition cost, and number of shares/warrants/units that you received on each date. Just like magic, we do all the accounting work for you!
The calculations are based on the relative market values of the four securities on the first day of separate trading. Since the last security was not distributed until June 12, 2012, and separate trading did not begin until June 14, 2012, you did not know your final cost basis allocation until that date.
If you already sold some shares or warrants in 2011 and claimed a different cost basis, we highly recommend that you amend your 2011 tax return to agree to the final correct cost basis amount. If you do not amend your tax return, allocate the rest of your cost basis to the remaining shares manually.
If you exercise any of the warrants to acquire additional shares of New GM common stock, your cost basis for those shares will be the exercise price paid plus the cost basis allocated to the warrants you exercised.