General Motors Initial Public Offering won't probably repay the federal government

From riches to rags to riches again is the story that is apparently about General Motors. The company had to take billions in loans from two governments. However, General Motors is beginning to become profitable again. General Motors had to declare bankruptcy for just a little when. When that was in effect, the non performers in General Motors brands were let go. There was a lot of turmoil in the office as well. General Motors has a new executive, again. GM nevertheless owes lots of money to the government. Time is going to tell if General Motors can repay the loans after the Initial Public Offering, though GM leadership doesn’t think so.

General Motors will owe after Initial Public Offering

During the summer, General Motors announced that it was on the cusp of filing for an original public offering of stock. The business duly filed the paperwork. The government is nevertheless the majority shareholder. About 61 percent of all General Motors stock is held by the federal government. To pay the government back, an IPO will include selling the government’s shares to investors. General Motors, as outlined by the New York Times, does not think the auto bailout loans can be able to be repaid all at once.

Proof of viability required

In order for the Treasury to feel good about it, and for General Motors, there must be more of a history of new profitability on the part of the company. Daniel Akerson, the newest CEO, thinks so. He has already stated that he believes it will take a few years. He told a group of reporters at a recent press briefing that the auto conglomerate needs to build a history of solid performance again until the government shares could be fully divested.

A long way to go until GM sleeps

General Motors has pared itself down to four core brands, being Buick, Cadillac, Chevrolet and GMC. The outgoing CEO, Ed Whitacre, announced his retirement as soon as the second profitable quarter in a row was posted.

Further reading

NY Times

nytimes.com/2010/09/17/business/17auto.html?ref=automobiles