General Motors: Another billions of debts repaid

M it den Actions announced by CFO Chris Liddell on Thursday (October 28th) GM is trying to gain the trust of its future shareholders and freeing itself from a total of 11 billion dollars in burdens.

GM is getting ready for the IPO

The IPO is expected in November and is likely to be one of the biggest of all time. At the moment, GM is mainly in the hands of the American taxpayer, who saved the company from bankruptcy last year with 49.5 billion dollars and enabled a fresh start.

The automaker has already repaid part of the debt, now there is an additional $ 2.1 billion. GM acquires government-held preferred stock. This increases the total, including interest, that has so far flowed back to the treasury to $ 9.5 billion. The rest of the money will essentially go into the cash register with the IPO.

To get dressed up for the return to the floor, GM has secured a credit line of $ 5 billion from a group of banks. The car manufacturer can access the money for five years and use it to finance the new development of fuel-efficient cars or the modernization of plants.

Further debts are being paid

GM pays for employee pensions At least 6 billion dollars aside, in addition to cash, the company also pays in shares. The company is also paying off $ 2.8 billion in debt to the UAW auto union health fund.

Workers helped save GM with billions in concessions. For this they now hold a stake in the company. The majority, at 60.8 percent, lies with the US state. Old investors and the Canadian state, who had also given billions in aid, are also on board. GM also has large factories in the neighboring country.

General Motors slipped into bankruptcy in the middle of last year. A failed model policy, excessive debts, outdated plants and high costs for personnel had led to the disaster. In the meantime, however, the cars are selling well again and the company is earning billions - the right time to go public.

Discussions are currently underway as to how many shares will be brought to the stock market in a first step. We are talking about a volume of 8 to 16 billion dollars. Ultimately, the decision depends on how many large investors signal their interest in advance. Only with sufficientDemand can be a success and the taxpayers get their money back in the end.