GM pays back another tranche of the 1.5 billion euro Opel bridge loan
By Andrew C., 26 Aug, 2010. 0 Comments
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Amid the German government's supposed reluctance to provide 4.5 billion euros in the restructuring of OpelVauxhall, General Motors has paid back another tranche of a 1.5 billion euro ($2.2 billion) bridge loan advanced by Germany last June to save the segment from bankruptcy. In particular, GM had paid back another 200 million euros of the loan. In a statement, Enrico Digirolamo, GM Europe chief financial officer,
said that it now has an outstanding balance of 400 million euros, which it expects to pay back by November 30. When GM went into its 39-day bankruptcy, the German government provided 1.5 billion euros to keep Opel afloat. Germany had offered an additional 4.5 billion euros but this option has been thrown in limbo after GM chose to keep Opel instead of selling it off to the preferred bidder, Magna International Inc.
While attending an event at the Texas Lutheran University last week, chairman Ed Whitacre said that GM was financially strong enough to stem the costs itself and will not need the money of Germany's taxpayers. However, GM has since taken that statement back and had reaffirmed that it requires state aid from Germany. [via autonews]
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