GM has already received 9.4 billion dollars of a total of 13.4 billion that has been pledged by the US government. The troubled Detroit automaker is slated to receive another 4 billion dollars on February 17.
GM has received the second payout of its multi-billion dollar US government bailout.
On Wednesday, the company received a payout of 5.4 billion dollars from the US Treasury.
So far, GM has received 9.4 billion of 13.4 billion dollars in low-cost, emergency loans pledged to the troubled Detroit automaker. It is slated to receive the remaining 4 billion on February 17.
The loans are to be paid pack within 3 years and come with the main condition that GM prove its viability as a business by the end of March. It will have to submit yet another detailed restructuring plan by February 17 in order to receive that final payout.
GM needed even this second loan payout to continue operating. Fritz Henderson, Chief Operating Officer at GM, said on Tuesday that the company would face bankruptcy without it.
But GM still faces stiff challenges ahead. Another condition of the loans is that GM reduce its non-secured debt by two-thirds - debt held by holders of GM-issued bonds. GM has 27.5 billion dollars in such debt and must convince bondholders to swap debt for equity in the company. Something bondholders have been weary of doing.
GM is also negotiating with the UAW to halve a 20 billion dollar commitment to the union's health-care trust fund. GM wants to offer equity instead there too.