General Motors Co. said today that it would begin paying back American and Canadian government loans, with a $1.2 billion US first instalment in December.
The announcement comes as part of the company's first-quarterly results since emerging from bankruptcy protection as a "new GM" in July. The recovering automaker will pay $1 billion US to the United States and $192 million US to the Canadian government initially, followed by quarterly payments.
The company's debt level now stands at $17 billion US, including $6.7 billion US in U.S. loans, $1.4 billion US from Canada, $1.3 billion US in German loans and another $7.6 billion US globally. Prior to emerging from bankruptcy protection, the company's debt level had been at $94.7 billion US.
As for the company's performance, GM posted revenues of about $28 billion US for the third quarter of 2009, July 1 to September 30, 2009, which overlaps GM's exit from bankruptcy protection on July 10, 2009. However, GM still posted a $1.15 billion US loss for that quarter.
"We have significantly more work to do, but today's results provide evidence of the solid foundation we're building for the new GM," Fritz Henderson, GM's chief executive, said in a statement.
General Motors Co. said today that it would begin paying back American and Canadian government loans, with a $1.2 billion US first instalment in December.
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