GM takes another $4 billion
05-27-2009, 04:29 AM
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GM takes another $4 billion
General Motors Corp. borrowed $4 billion in additional federal aid Friday, which is $1.4 billion more than originally requested, to avoid running out of money, the automaker said late today in a regulatory filing.
That brings GM’s total borrowing to $19.4 billion.
Until today, the automaker had received $15.4 billion, but last month signaled it would need $11.6 billion more to survive until the end of the year including $2.6 billion before June 1.
But the $2.6 billion payment was not enough to cover bills, GM said late today. It needed the $4 billion now and the balance of the $11.6 billion later this year.
“We appreciate President Obama’s and his administration’s ongoing support of GM and the domestic U.S. auto industry as we undertake the difficult but necessary actions to reinvent our company,” GM said in a prepared statement. “We will continue to work closely with members of the President’s Auto Task Force throughout our restructuring and together we will continue to monitor our liquidity needs during this period.”
GM faces a June 1 deadline to restructure the company and reach concessions with the United Auto Workers and bondholders or be forced into a Chapter 11 bankruptcy filing.
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That brings GM’s total borrowing to $19.4 billion.
Until today, the automaker had received $15.4 billion, but last month signaled it would need $11.6 billion more to survive until the end of the year including $2.6 billion before June 1.
But the $2.6 billion payment was not enough to cover bills, GM said late today. It needed the $4 billion now and the balance of the $11.6 billion later this year.
“We appreciate President Obama’s and his administration’s ongoing support of GM and the domestic U.S. auto industry as we undertake the difficult but necessary actions to reinvent our company,” GM said in a prepared statement. “We will continue to work closely with members of the President’s Auto Task Force throughout our restructuring and together we will continue to monitor our liquidity needs during this period.”
GM faces a June 1 deadline to restructure the company and reach concessions with the United Auto Workers and bondholders or be forced into a Chapter 11 bankruptcy filing.
More...
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