GM to Receive $4 Billion Today
A White House aide has confirmed that GM will receive the last installment of its $13.4 billion federal loan today, worth $4 billion, as planned. Chrysler’s request for more loan money will be treated as a new request and address separately, according to the aide.
GM is required to submit a restructuring plan today, but has struggled to finalize concessions with its bondholders and the UAW. Last Friday, negotiations between GM and the UAW collapsed. It is speculated that GM may request more time to implement its restructuring changes.
Chrysler, which has received $4 billion in aide to date, is seeking another $3 billion. It was preparing two viability plans to submit today: one that would address its future going forward with a partnership with Italian automaker Fiat, and one without a partner.