revision
05-23-2009, 07:29 AM
GM receives $4B in aid amid bankruptcy fears
Sat, 23 May 2009 05:28:25 GMT
http://www.presstv.com/detail.aspx?id=95672§ionid=3510213
General Motors has received another $4 billion from the US Treasury as the company is expected to file for bankruptcy protection by the end of the month.
It also reached a deal with the Canadian Auto Workers Union to reduce labor costs.
The latest emergency funds bring the total in emergency government loans to GM to $19.4 billion since the start of the year.
GM said it is using the funds to maintain adequate liquidity ahead of a June 1 deadline for the embattled automaker to present its restructuring plans to the US government.
In an interview with C-SPAN cable television network, US President Barack Obama said he was confident GM would thrive after restructuring, but he made no mention of bankruptcy.
"Ultimately, I think that GM is going to be a strong company and we are going to be pulling out as soon as the economy recovers and they've completed their restructuring," he said.
The tentative agreement with the CAW would reduce hourly compensation costs by about 28 percent after including a round of concessions the union agreed to give in March. GM won a similar deal from the United Auto Workers Union (UAW) on Thursday.
The company is very likely to enter bankruptcy if it fails to reach an agreement with bondholders to cut some $24 billion of the amount they are owed.
GM has offered bondholders a 10 percent stake in a restructured company -- an offer so far rejected by them as insufficient.
GM would be the second of the Big Three automakers entering bankruptcy after its smaller rival Chrysler, which plans to sell all of its assets to a new company owned by Fiat, a UAW healthcare trust, and the US and Canadian governments.
Sat, 23 May 2009 05:28:25 GMT
http://www.presstv.com/detail.aspx?id=95672§ionid=3510213
General Motors has received another $4 billion from the US Treasury as the company is expected to file for bankruptcy protection by the end of the month.
It also reached a deal with the Canadian Auto Workers Union to reduce labor costs.
The latest emergency funds bring the total in emergency government loans to GM to $19.4 billion since the start of the year.
GM said it is using the funds to maintain adequate liquidity ahead of a June 1 deadline for the embattled automaker to present its restructuring plans to the US government.
In an interview with C-SPAN cable television network, US President Barack Obama said he was confident GM would thrive after restructuring, but he made no mention of bankruptcy.
"Ultimately, I think that GM is going to be a strong company and we are going to be pulling out as soon as the economy recovers and they've completed their restructuring," he said.
The tentative agreement with the CAW would reduce hourly compensation costs by about 28 percent after including a round of concessions the union agreed to give in March. GM won a similar deal from the United Auto Workers Union (UAW) on Thursday.
The company is very likely to enter bankruptcy if it fails to reach an agreement with bondholders to cut some $24 billion of the amount they are owed.
GM has offered bondholders a 10 percent stake in a restructured company -- an offer so far rejected by them as insufficient.
GM would be the second of the Big Three automakers entering bankruptcy after its smaller rival Chrysler, which plans to sell all of its assets to a new company owned by Fiat, a UAW healthcare trust, and the US and Canadian governments.