GM to Pay $1 Billion Toward Loan

[Purveyor]

By SHARON TERLEP

DETROIT—General Motors Co. expects to make a $1 billion loan repayment to the U.S. Treasury on Wednesday as part of its plan to repay the government ahead of schedule, a person familiar with the plan said.

GM promised to pay back at least $1 billion of its $6.7 billion cash loan each quarter, with the final payment coming by the end of June. GM's first quarter ends next week.

The company had two years to repay the loan, but Chairman and Chief Executive Edward E. Whitacre Jr. has made repaying the money a priority as GM tries to shed the stigma of the federal bailout it received last year from the U.S. Treasury.

Under the deal, the U.S. loaned GM $50 billion. The company is to repay $6.7 billion directly; the rest is covered in the form of a 60% equity stake that the Treasury plans to start selling off after GM launches an initial public offering.

Separately, GM promised to repay $200 million a quarter to the Canadian government, which also loaned GM billions of dollars and converted most of that loan into equity.

In promising early payments of the loans, Mr. Whitacre backed off a timetable set by his predecessor, CEO Frederick "Fritz" Henderson, to go public sometime this year. Instead, Mr. Whitacre has said, he is focused on making the loan repayments and stabilizing GM's operations to make the company more attractive to potential investors.

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http://online.wsj.com/article/SB10001424052748704094104575144013679496740.html?mod=googlenews_wsj

[NNN0LHI]

1. Where is the "money will never be paid back" crowd now?

[underpants]

3. The gubment cain't do nothing right

like blowing up that inane talking point

too funny.

Gee running a business just isn't that hard after all now is it?

[DCBob]

4. Indeed. I remember arguing with many of those idiots back then..

They insisted this was a complete waste and we would never see a penny back in return.

[madokie]

2. Thats great as long as its not on the back of the workers

but my suspicions is it mostly will be. Remember how Chyrsler repaid their loan ahead of time years ago. I think it is good business for our government to do bailouts or whatever you want to call them under some circumstances.

[CTyankee]

5. So will the senior note I took out to get 7.5% interest get repaid?

I'd really like to know. I put a chunk of money into GM for that note...it was a stock that acted like a bond. I did it to pay for my aged mother's care in the dementia unit at her assisted living facility...it was money from the sale of her house. Unfortunately, she did not live long enough to benefit and now it seems hopeless.But of course that was the "old GM." The "new GM" doesn't have to do diddly...

[FrenchieCat]

6. Pres. Obama literally saved the Auto Industry......against "noise", but

it won't be noticed till the history books are written....
as long as the Texas board of education is not involved.

[NNN0LHI]

7. Believe me, I noticed

[RB TexLa]

8. How much could they get for the Buick label to use for repayment?