GM Loan Payment Hits A Snag And May Now Run Out Of Cash

General Motors is in danger of running "out of cash" before March 31 if it doesn't receive the second of three federal government loan payments, a top company executive said late Tuesday in Detroit.

The second loan installment to GM of $5.4 billion, which is part of the $13.4-billion rescue plan GM agreed to with the Treasury, was expected Friday but didn't occur. Company officials have attributed the holdup to the complicated nature of the deal.

"It's critical that we receive it," Fritz Henderson, GM president and chief operating officer, said Tuesday. "If we don't get our second installment ... we'll run out of cash," he said.

"We scheduled the time for the loans because we needed it when we needed it," he said.

Detroit Auto Show Gallery

Also, don't forget you can now upload your photos direct from your mobile devices simply by sending them to mobile@autospies.com

Read Article

100tnega - 1/22/2009 2:34:56 PM

+1 Boost

Damn 1UAW, you're like the Anderson Cooper of Autospies.

veyron1001 - 1/22/2009 4:38:06 PM

-1 Boost

So let me get this straight. If they go bust, the Americans tax dollars will be used on something other than bailing out a private corporation? Waiting for the good news.

S4cabriofoxone - 1/23/2009 12:21:23 AM

+2 Boost

The ill effects of their downfall will be much, much greater.

vdub07 - 1/22/2009 9:25:14 PM

0 Boost

what is gm spending all this money on to go broke again.

eidos2004 - 1/22/2009 9:44:56 PM

0 Boost

GM is spending all that money on 1UAW in order to keep him busy responding to the board! By the way, Generous Motors (as the UAW members fondly call GM)likes to dispense cash like a politician walking the streets of Philadelphia.

woood - 1/23/2009 3:16:44 AM

0 Boost

I remember reading something a couple of weeks earlier that Getelfinger or whatever, said that GM no longer needs further bailout money. Does he really know what he is talking about? Is he authorized to speak to media about the bailout issue?

Type707 - 1/23/2009 11:55:45 PM

+1 Boost

Throwing Money at Someone/Company/Organization WILL NOT resolve their financial troubles. Cutting back on UNNECESSARY spending must be implemented. For instance: Bonuses, Country Club memberships and other leisure events they attend.

OneOfOne - 1/31/2009 3:18:13 PM

+1 Boost

stop crying wolf. if gm goes under nothing will happen. then their assets will be sold and someone else will fill that void. hardly a bad thing.