GM executives dump stock as trading window opens
DETROIT (Reuters) - Six General Motors Corp (GM.N) executives disclosed on Monday they sold almost $315,000 in stock and liquidated their remaining direct holdings in the struggling automaker.
In filings with U.S. securities regulators, the GM insiders led by former GM Vice Chairman and product chief Bob Lutz detailed stock sales on their behalf on Friday and Monday during a trading window for such transactions.
Lutz, who is now an adviser to the automaker, sold $130,989 worth of GM stock at the closing price of $1.61 on Friday.
That sale of the 81,360 shares cleared out all of Lutz's direct holdings of GM stock, according to his filing with the Securities and Exchange Commission.
The five other executives, including Lutz's successor, Thomas Stephens, GM North America President Troy Clarke, Chief Information Officer Ralph Szygenda and manufacturing chief Gary Cowger and head of European operations Carl-Peter Forster also sold all of their GM stock holdings, according to the filings.
GM is headed for either a bankruptcy filing or an out-of- court restructuring that would wipe out current stockholders by flooding the market with new shares to pay off creditors.
The automaker's stock could be either worthless in a bankruptcy or worth less than 2 cents per share if it proceeds with its plans to issue shares to creditors led by the U.S. Treasury, the company has said.
Insider trading restrictions have prevented GM's senior executives from selling stock holdings for most of this year as the automaker has scrambled to restructure under the oversight of the Obama administration's autos task force.
But after the filing of its quarterly report with the SEC last week, GM executive officers and directors were notified a "trading window" had opened on Friday, spokeswoman Julie Gibson said.
The trading window remained open on Monday and could be open for Tuesday as well, she added.
(Editing by Andre Grenon)
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