Reply #5: GM's mortgage unit deal brings in $9-billion

[ozymandius]

NEW YORK -- General Motors Corp. took another step back from the brink yesterday, announcing it has sold its commercial real estate business to generate nearly $9-billion (U.S.) in cash.

Analysts said the sale and the employee reduction plan unveiled this week are crucial steps for the money-losing auto maker, but that far more must be done before it can return to profitability.

GM, which lost $10-billion last year, is engaged in a multifront effort to stave off bankruptcy protection as it attempts to reduce its cost structure and halt the steep decline in its market shares.

GM's wholly owned financing arm, General Motors Acceptance Corp., closed the deal yesterday to sell its commercial mortgage unit to private investors for $1.5-billion, plus the repayment to GMAC of nearly $7.3-billion in intercompany loans.

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