GM uses US Treasury funds to help Delphi Automotive
Wednesday, 04 Nov 2009
Dow Jones reported that General Motors Co used USD 2.8 billion in US federal funding to help parts maker Delphi Automotive LLP emerge from bankruptcy.
GM also provided an update on a closely watched escrow account of its bailout funds. The auto maker said USD 13.6 billion in US Treasury funds remain in the fund, less than one third of the USD 50 billion the company has received from the government since December.
GM said that Treasury granted the release of USD 1.7 billion to acquire part of post bankruptcy Delphi entity. Another USD 1.1 billion will be used to buy Delphi's global steering business and four parts manufacturing facilities.
Delphi, GM's former parts arm, is a key supplier for the auto maker. GM is buying several Delphi plants and paying Delphi creditors as part of the supplier's exit from bankruptcy. The figures give the first, albeit incomplete, glimpse of GM's cash position and financial state since it emerged from bankruptcy protection this summer.
