GM to buy back $2.1 billion of Preferred Stock, improve financial position
Filed under: Government/Legal, GM, Earnings/Financials, UAW/Unions
General Motors has just announced a series of actions intended to improve its financial position and make it more attractive to investors ahead of its Initial Public Offering. Perhaps the most intriguing is word that it plans to purchase $2.1 billion of Preferred Stock from the United Stated Department of the Treasury at a sum that is $700 million more than the recorded value of those stocks.
In addition, GM will:
- Contribute at least $4 billion in cash and $2 billion in GM common stock to its U.S. hourly and salaried pension plans
- Repay the $2.8 billion outstanding loan to the United Auto Workers Retiree Medical Benefits Trust
- Complete a $5 billion revolving line of credit
- Save $500 million per year by restructuring its payment deals on vehicles in transit to dealers
The official press release, which can be found after the jump, breaks each of these actions down using appropriately difficult to decipher language designed specifically to make your head explode… but you’re free to check it all out all the same.
[Source: General Motors | Image: Associated Press/Paul Sancya]
Continue reading GM to buy back $2.1 billion of Preferred Stock, improve financial position
GM to buy back $2.1 billion of Preferred Stock, improve financial position originally appeared on Autoblog on Thu, 28 Oct 2010 15:28:00 EST. Please see our terms for use of feeds.
Permalink | Email this | Comments
View full post on Autoblog
Related posts:
