The U.S. Treasury Department gave General Motors an additional $2 billion in emergency loans this week, brining the total lent so far to a whopping $15.4 billion. Total lending under the Automotive Industry Financing Program now totals $26.8 billion, including $5 billion to GMAC and $5.5 billion to Chrysler and its financing arm.
The funds were handed to GM on Tuesday, the company confirmed. The money is likely the minimum amount needed to keep GM operating until the end of May. General Motors has until then to restructure its operations or be forced by the government into Chapter 11 bankruptcy proceedings.
In a statement to the press, GM said the funding is required to “maintain adequate liquidity as the company undergoes an aggressive restructuring.” The statement went on to say, “we appreciate President Obama’s and his Administration’s ongoing support of GM and the domestic U.S. auto industry as we undertake the difficult but necessary actions to reinvent our company.”
If GM is able to restructure to the Obama Administration’s satisfaction, it could receive billions more in “bridge loans.” Otherwise, the company will be pushed into a government-backed bankruptcy filing.
