General Motors will buy $2.1 billion worth of preferred stock as part of a move to pay off its $49.5 billion in federal bailout loans. GM will also launch a series of measures to reduce its debt by $11 billion.
GM will make contributions to the UAW pension fund, to the tune of $6 billion, and secure a $5 billion line of credit from a series of banks, which should help reduce its total debt obligations by a total of $11 billion.
“These actions will bring down our leverage by $11 billion by reducing debt and improving our pension funding position,” GM CFO Chris Liddell said in a statement.
[Source: Automotive News]