By Drew Johnson
Thursday, May 28th, 2009 @ 4:31 pm
 
Confirming reports from earlier this month, the United States government will give General Motors another $30 billion. The latest cash infusion is on top of the $19.4 billion already given to the ailing Detroit automaker over the past few months. GM will likely file for Chapter 11 bankruptcy next week.

According to Automotive News, General Motors will only be required to pay back $8 billion of the $30 billion loan. The difference will be made up by equity in the new GM.

The U.S. government will likely forgive the $19.4 billion already loaned to the Michigan automaker.

The government's $49.4 billion investment in GM will likely net a 72.5 percent stake in the new company - a 1 percent larger share than originally predicted. However, that stake could be reduced to 55 percent, depending on options exercised by the UAW.

GM's bondholders recently agreed to a new debt-for-equity swap that could see up to 25 percent of the new GM owned by lenders. Holders of $27 billion of GM debt will initially be given a 10 percent cut of the new company, with warrants to buy an additional 15 percent.