UPDATE 1-Motors Liquidation stock drops in early trading

DETROIT/NEW YORK, July 15 (Reuters) - Shares of Motors Liquidation Company (MTLQQ.PK), representing the "old" General Motors Corp, tumbled more than 50 percent on Wednesday a day after securities regulators warned the stock would have no value.

"Motors Liquidation Company is currently winding its way through bankruptcy court and there is a real possibility that stock holders will receive nothing from these proceedings," the U.S. Securities and Exchanges Commission said on Tuesday.

"While the common stock of Motors Liquidation has not been canceled, investors should not interpret that as indicating that the shares have any value," the SEC said.

The SEC's warning on the shares follows similar warnings by Motors Liquidation and General Motors Co, the new GM that emerged from bankruptcy.

The stock was down 55.7 percent, or 63 cents, to 52 cents in early trading.

Motors Liquidation, representing an ownership interest in the "old" shell of GM, remains in bankruptcy and will liquidate GM assets such as shuttered plants while also assuming liability claims.

The new GM - renamed General Motors Co - emerged from bankruptcy protection on Friday by completing a sale of its best assets such as Chevrolet and Cadillac to a company funded by the U.S. Treasury.

The new GM, which has no publicly traded securities, has said that none of the publicly owned stocks and bonds issued by the former company will become securities for the new company.

It is highly unlikely Motors Liquidation shareholders will receive anything because for them to be paid, all of the other unsecured creditors would have to be paid first, including bondholders who had held $27 billion in GM debt.

On July 10, U.S. securities regulators halted trading in the shares of old GM, which had been using the GMGMQ trading symbol on pink sheets.

The fifth letter, "Q," denotes the company's bankrupt status.

The new ticker symbol -- MTLQQ -- is meant to avoid confusing the "old" GM with the "new" General Motors.

Motors Liquidation also warned on Friday that it strongly believes there will be no value for the common stockholders in the bankruptcy liquidation process, even under the most optimistic of scenarios.

"Stockholders of a company in Chapter 11 generally receive value only if all claims of the company's secured and unsecured creditors are fully satisfied," the company said.

"In this case, management strongly believes all such claims will not be fully satisfied, leading to its conclusion that the common stock will have no value." (Reporting by Ellis Mnyandu and Soyoung Kim; Editing by Theodore d'Afflisio and Matt Daily)