UPDATE 1-Motors Liquidation files plan to resolve bankruptcy

* Aims to distribute 'New GM' stock to unsecured creditors

* Targeting Q1 2011 for confirmation of the plan



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Sept 1 (Reuters) - Motors Liquidation Co, the old shell of General Motors, said it has filed a plan with a U.S. court to come out of bankruptcy.

If the plan is confirmed, substantially all of the company's assets and liabilities will be transferred to four trusts.

The new plan also aims to distribute the company's 'New GM' stock and warrants to unsecured creditors.

Motors Liquidation is the shell of General Motors that retained all of GM's old unwanted assets and liabilities after the 'new GM' -- renamed General Motors Co -- emerged from bankruptcy protection last year by completing a sale of its best assets such as Chevrolet and Cadillac to a new company funded by the U.S. Treasury.

Motors Liquidation presently owns 10 percent of General Motors common stock plus warrants exercisable for a further 15 percent of General Motors common stock on a fully diluted basis.

Motors Liquidation said it was targeting the first quarter of 2011 for the confirmation of the plan by the court.

The company also expected a majority of the unsecured claims to be resolved within two years of the plan being confirmed.

(Reporting by Sakthi Prasad in Bangalore; Editing by Dan Lalor) Keywords: MOTORSLIQUIDATION/ ([e-mail]; within U.S. [phone]; outside U.S. [phone]; Reuters Messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.