**GM preparing for bankruptcy**

vztrt · 22-04-2010, 06:38 PM

http://news.theage.com.au/breaking-n...0422-t99p.html

Quote:

GM has repaid all government loans: CEO
April 22, 2010 - 5:59AM

AFP

General Motors has repaid its government loans ahead of schedule and is making "great progress," says the automaker's chief executive.

"GM's ability to pay back our loans ahead of schedule is a sign that our plan is working and that we're on the right track," Ed Whitacre said at a press conference on Wednesday.

"It's also an important step toward allowing our stockholders to reduce their equity investments in the company."

Whitacre noted that the repayment was five years ahead of the original loan schedule and two months ahead of a target announced earlier this year.

The final $US5.8 billion ($A6.23 billion) repayment does not cover loans made to the "old" General Motors which is being slowly wound down through the bankruptcy process.

The US government, which provided about $US50 billion ($A53.68 billion) in emergency loans, holds a 60.8 per cent stake in the new company. The Canadian government and a retiree health care trust also hold significant stakes.

GM has said it will launch a public stock offering as soon as is practical - perhaps as early as the second half of this year - but it will likely take years for the US government to wind down its massive stake.

"We are able to repay the taxpayers ahead of schedule because we are designing, building and selling the best cars and trucks GM has ever produced," Whitacre said.

"Yes, we still have a lot of hard work ahead of us even with the repayment of the loan," Whitacre acknowledged, adding that "we're making a lot of progress - great progress."

A GM spokesman contacted by AFP said the final payment of $US8.4 billion ($A9.02 billion) in government loans were repaid on Tuesday.

General Motors reported a post-bankruptcy 2009 net loss of $US4.3 billion ($A4.62 billion) on April 7, but said it was encouraged by the results and hoped to achieve profitability in 2010. It is expected to report first quarter results next month.

© 2010 AFP