The company that got stuck with General Motors Co.’s debts and bad assets will begin selling stock and warrants in the new GM, according to a regulatory filing Tuesday.
Motors Liquidation Co. said in the filing with the Securities and Exchange Commission that the stock and warrants being sold starting Tuesday are worth a total of $5.7 million. Motors Liquidation was split from the new GM by a bankruptcy judge in 2009.
The company says it will sell 87,000 shares of GM worth $2.7 million. It also will sell 158,000 warrants to buy GM stock.
Half the warrants allow people to buy new GM stock for $10 per share and the other half for $18.33 per share. The company says the warrants are worth $3 million.
Jackson Hewitt files for bankruptcy
Jackson Hewitt said Tuesday it filed for Chapter 11 bankruptcy protection under the weight of heavy debt.
The nation’s second largest tax preparer said its lenders agreed to a restructuring plan to lower debt and interest expense. It filed the prepackaged plan with the U.S. Bankruptcy Court for the District of Delaware for court approval.
Under the plan, Jackson Hewitt’s secured lenders will receive their pro rata share of a new $100 million term loan and all of the stock in the reorganized company. Shareholders and unsecured lenders won’t receive anything.
Jackson Hewitt expects the plan to be implemented in 45 to 60 days.
Hershey drops suit against rival Mars
A federal lawsuit filed by The Hershey Co. against rival candy company Mars. Inc. has been dropped.
Hershey’s trademark-infringement suit filed in the fall had alleged that new packaging for Mars’ line of Dove candies too closely mimicked the orange, brown and yellow packaging of Hershey products including Reese’s Peanut Butter Cups.
Mars filed a concurrent suit in federal court in Virginia seeking a ruling that it had not infringed on Hershey’s trademark.
The Patriot-News of Harrisburg, Pa., reported Tuesday that attorneys for the two companies had filed joint dismissal stipulations.
SDI chief to testify on trade issues
Keith Busse, chairman and chief executive officer of Fort Wayne-based Steel Dynamics Inc., is scheduled to testify this morning on trade enforcement during Senate subcommittee hearing.
Busse is among eight witnesses invited to appear before the Senate Appropriations Homeland Security Subcommittee. Sen. Dan Coats, R-Ind., is the ranking Republican on the panel and plans to make remarks on how trade laws protect Indiana companies, including steelmakers, from unfair imports.
Yahoo ready to start email upgrades
Yahoo Inc. is giving its popular email service a long-promised facelift in an attempt to make it more appealing to people who are increasingly using Facebook, Twitter, Google and other online alternatives to communicate.
The estimated 277 million users of Yahoo’s free email service will be switched to the new version during the next few weeks.
The overhaul will enable updates to Facebook and Twitter accounts to be posted from within Yahoo’s email boxes.
