In Michigan
6:30 am
Tue April 21, 2009

GM, Chrysler to get $5.5B more in government loans

Detroit, MI – Detroit, MI (AP)

A federal report says the U.S. government will loan General Motors Corp. up to $5 billion more to make it through June 1, and Chrysler LLC could get up to $500 million more by April 30.

The report on the bank bailout program released Tuesday by a special inspector general says the money will be made available for working capital as both companies try to meet government restructuring demands.

GM already has received $13.4 billion in government loans, while Chrysler has received $4 billion.

The government's auto task force rejected both companies' restructuring plans on March 30 and gave Chrysler until April 30 to make further cuts and take on a partner or face liquidation.

GM has until June 1 to complete its restructuring or face seeking bankruptcy protection.