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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.