Summary
General Motors Company (GM) filed an 8-K on September 1, 2017, reporting the formal elimination of two series of preferred stock from its corporate charter: the Series A Fixed Rate Cumulative Perpetual Preferred Stock and the 4.75% Series B Mandatory Convertible Junior Preferred Stock. This filing is primarily a procedural housekeeping measure, as all outstanding shares of both preferred stock series had already been redeemed or converted by 2014 and 2013, respectively. For investors, this action signifies the complete retirement of these specific preferred stock obligations, simplifying the company's capital structure. It confirms that these classes of stock no longer exist as part of GM's authorized capital, with no ongoing financial implications or outstanding shares to consider. The Certificates of Elimination were officially filed with the Delaware Secretary of State, making the removal effective upon filing.
Key Highlights
- 1GM formally eliminated Series A Fixed Rate Cumulative Perpetual Preferred Stock from its charter.
- 2GM formally eliminated 4.75% Series B Mandatory Convertible Junior Preferred Stock from its charter.
- 3These actions were completed by filing Certificates of Elimination with the Delaware Secretary of State.
- 4All Series A Preferred Stock was repurchased and redeemed between 2013 and 2014.
- 5All Series B Preferred Stock automatically converted to common stock in 2013.
- 6The filing is a procedural step to update the company's corporate charter.
- 7No financial impact is expected as all shares were already retired/converted.