GM reports $13.6 billion cash in escrow account in October

GM reports $13.6 billion cash in escrow account in October



Automotive News | November 3, 2009 – 12:01 am EST

 

DETROIT (Reuters) — General Motors Co. had $13.6 billion remaining in its U.S. government-funded escrow account as of October, after making payments related to the restructuring of its former parts subsidiary Delphi, the automaker said on Monday.

GM said in a filing with the U.S. Securities and Exchange Commission that it had deposited $16.4 billion of cash left over from its government-funded bankruptcy to the escrow account when it emerged from court protection on July 10.

In October, the automaker used $ 2.8 billion of that cash to buy Delphi’s steering business and other assets under a plan to support Delphi’s reorganization in bankruptcy.

Delphi, which GM spun off in 1999, ended four years in bankruptcy last month by completing the transactions with GM and selling most of its other assets to bankruptcy creditors.

GM, which slashed debt and costs in its fast-track bankruptcy, has not had to use any of the government reserve cash to cover operating expenses.

The U.S. Treasury, which provided about $50 billion in financing for GM’s restructuring, owns more than 60 percent of the No. 1 U.S. automaker.

GM remains Delphi’s biggest customer, and Delphi is GM’s biggest parts supplier.

A collapse of Delphi could have forced a near total shutdown of GM production, choking off revenue as the automaker rushes to complete its own turnaround after emerging from bankruptcy in July.

Share
Seniority Lists
Recent Posts!
Bargaining Committee

Chairman
Mike Herron
President
Tim Stannard
Zone at Large – 1st
Danny Taylor
Zone at Large – 2nd
Mark Wilkerson
Committeepersons
Joe McClure
Chad Poynor
Steve Roberts
Derek Lewis
Bill Cundiff
Kirk Zebbs
Don Numinen
Jay Minella
Danny Bragg
Chris Hill
Rashad Thomas
Keith Oswald
Chris Brown

1853 Officers

President
Tim Stannard
Chairman
Mike Herron
Vice President
Darrell DeJean
Financial Secretary
Mark Wunderlin
Recording Secretary
Peggy Mullins
Trustee (3)
Jay Lowe
Dave Clements
Dave Spare
Sgt. at Arms
David C Spare
Guide
Ashley Holloway
E-Board at Large (2)
David Ryder
Steve Roberts
GM Unit Chair
Mike Herron
Leadec Unit Chair
Larry Poole
Ryder Unit Chair
Patrick Linck
AFV Unit Chair
Neil Osborne
Retiree Chair
Mike Martinez

Get Text Alerts



asdasdsd

*Standard text messaging rates may apply from your carrier