General Motors will announce later today plans to repay the U.S. government some $6.7 billion in loans ahead of its initial due date of July 2015. The payments are expected to begin as early as next month, with $1 billion paid each quarter until the full sum is paid -- although that doesn't cover the total $50 billion the taxpayers have "invested" in the automaker after it declared bankruptcy earlier this year.
However, as the Washington Post points out, the amount the government will get back from GM depends on the value of the General's stock. With $6.7 billion in debt, $2.1 billion preferred stock and a 61 percent stake in the automaker, the $50 billion total is a long way off from being paid in full. And when GM reports its financial results tomorrow, it's not expected to show a profit, although the overall picture could be slightly better than anticipated.
[Sources: Washington Post, Detroit New
1 comment:
GM still has a long long way to go.
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