UPDATE 1-Judge to approve plan that pays GM creditors

* Bankruptcy court to approve Motors Liquidation plan

* GM to distribute stock, warrants

NEW YORK, March 3 (Reuters) – A U.S. Federal court judge on
Thursday said he would approve the bankruptcy plan for “Old
GM”, paving the way for General Motors (GM.N: Quote, Profile, Research) to begin
distributing stock and warrants to some unsecured creditors, a
spokesman said.

GM filed for bankruptcy in June of 2009 and its best assets
were sold to a new, stand alone company the following month. GM
held an initial public offering in November, selling shares for
$33 each. Shares closed on Monday at $32.98, up 15 cents or
0.45 percent on the day.

Many of its complicated claims and assets stayed in
bankruptcy court, however, and are part of the Motors
Liquidation Company’s Chapter 11 plan.

Judge Robert Gerber of U.S. Bankruptcy Court in Manhattan
said he would approve the plan during a one-day hearing,
according to Tim Yost, a spokesman for AlixPartners.

AlixPartners is the restructuring firm that is running the
winding down of Motors Liquidation.

“Motors Liquidation was pleased that the court today
indicated from the bench that it will be confirming MLC’s plan
for reorganization and issuing a written decision as soon as
feasible,” Yost said.

Once the plan is confirmed, a trust set up under the plan
can begin distributing a significant amount of stock and
warrants to unsecured creditors who have filed claims against
the company.

(Editing by Bernard Orr)