GM Loan Payment Hits A Snag And May Now Run Out Of Cash
Agent009 submitted on 1/22/2009 Official Bell & Ross Timestamp: 8:58:43 AM
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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.
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