As confirmed this morning by GM's CEO Fritz Henderson an outline agreement between GM and Magna International has almost been reached for the acquisition of Vauxhall and Opel. Currently, GM and the government of Germany are coming up with a memorandum of understanding with Magna International that would be the foundation for the 1.5 billion Euro (1.3 billion Pound) bridge financing, together with a solution that will protect Opel from creditors in the event GM files for Chapter 11 bankruptcy in the US.
They have already reached a framework agreement with the aim of working out as many of the details as possible before a conference with Chancellor Merkel to sign the memorandum of understanding today. The attention of the German government is now focused on reaching an agreement with Magna, which has been requested to forward its new proposals for Opel prior to tonight’s meeting. If GM and Magna cannot reach an agreement, there’s no other alternative for Opel but the filing for bankruptcy.
Read Article