Report: GM lost $4.3 billion after it emerged from bankruptcy last year

Article by Christian A., on August 27, 2010

Official financial results indicate that General Motors Co. lost $4.3 billion after it emerged from bankruptcy last year. The release of these statements brings the company a step closer to a stock offering.

In the last quarter of the year, GM revealed that it spent $1.9 billion in operating cash, partially due to repayments to governments that supported it during its restructuring. Including third-quarter results, GM generated $1 billion in 2009 cash after its bankruptcy.

In a statement, CFO Chris Liddell said that there remains some significant work to be done but that he thinks it has a chance of being profitable in 2010.

 Since GM exited its US-sponsored bankruptcy on July 10, it has been working to establish its so-called fresh-start accounting for "New GM" to meet regulatory requirements.

This latest release from GM is actually the first official assessment of post-bankruptcy GM's financial condition.

The purpose of this fresh-start accounting, which is used when companies exit bankruptcy, is useful in helping the US government hit its goal of recouping the $50 billion it poured into GM's restructuring.

For the US government to be able to begin selling its 61% equity stake, GM has to have an initial public offering, which executives claim could arrive this year at the earliest.

Topics: gm, bankruptcy

If you liked the article, share on:

Comments

Recommended

The primary suggestion of a 4x4 ute from French company Peugeot was first revealed in 2016. Fifteen months later, the production version is launched. Now, Peugeot is not shying away...
by - June 24, 2017
The new Jaguar E-Pace crossover will soon hold its official launch on July 13 and is expected to arrive at the showrooms by early next year. It couldn’t have come...
by - June 24, 2017
As prices of the original Shelby Cobra have skyrocketed into astronomical proportions, there are firms like Superformance that serve replicas to consumers who demand the same levels of performance at...
by - June 24, 2017
New and improved 2018 Subaru Legacy comes packed with a number of upgraded features from the get go - from the exterior to the interior. And the company has finally...
by - June 23, 2017
In an interview involving Lamborghini CEO Stefano Domenicali and Automotive News, the topic about the Urus was thoroughly discussed. This super SUV is scheduled to make its debut later this...
by - June 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries