San Jose Bankruptcy Attorney comments General Motors’ post-bankruptcy 3rd quarter loss of $1.2 billion.
San Jose Bankruptcy Attorney comments General Motors’ post-bankruptcy 3rd quarter loss of $1.2 billion.
General Motors revealed today that it lost $1.2 billion since the company emerged from bankruptcy during the summer. While the loss figure is large, the company also announce that it intends to begin repaying some of the $6.7 billion in loans it received from the Treasury as part of the nearly $50 billion bailout of the auto giant.
General Motors had a very speed trip through the Chapter 11 bankruptcy proceedings with its largely pre-packaged bankruptcy that was agreed to by its largest stakeholders including the United Auto Workers and the Treasury Department. General Motor’s bankruptcy has been wrenching to the states where it has closed facilities and shed thousands of jobs. But the slimmer, trimmer, and hopefully more nimble post-bankruptcy company plans to be a player for years to come in the global auto market.
The company has benefitted from low interest rates and the government cash-for-clunkers program which boosted auto sales in the 3rd quarter. With the government intervention into the company, the GM product line features many more hybrid and electric vehicles than probably were featured prior to the bankruptcy filing.
The company’s bankruptcy reorganization plan calls for GM to begin selling stock again in 2010 so that the bondholders, who swapped their debt for equity, can begin to recoup their investment in a hopefully resurgent General Motors.
GM to start repaying debt to U.S., CNN.com, November 16, 2009
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