General Motors revealed that it has repaid $8.1 billion in loans to the governments of U.S. and Canada ahead of the scheduled maturity date of July 2015. The repaid amount constituted $6.7 billion in U.S. Treasury (“UST”) loans as well as $1.4 billion in Export Development Canada (“EDC”) loans that it had received while going through the bankruptcy protection last year.
 
The $6.7 billion UST loan is equivalent to 13% of the $52 billion that the U.S. taxpayers have invested in the company, mainly for a 61% ownership stake. The EDC loans come up to 15% of the $9.5 billion in loans from the governments of Canada and Ontario.
 
GM has vowed to repay the remaining $45.3 billion to the U.S. government and $8.1 billion to the governments Canada and Ontario through a public stock offering, perhaps later this year.
 
The post-bankruptcy GM is primarily owned by the governments of U.S. and Canada, and by a trust fund providing medical benefits to United Auto Workers (UAW) retirees. Specifically, the U.S. government holds a 61% stake, the UAW union holds a 17.5% stake through its Retiree Medical Benefits Trust and the Canadian government holds 11.7%. The remaining shares went to the bondholders of the old company.
 
The new GM retains the Chevrolet, Cadillac, GMC and Buick core brands, along with most of its overseas operations. These brands will have a total of 34 U.S. nameplates by 2010.
 
From 2005 till the bankruptcy, GM had lost $88 billion as its debt rose to a staggering $54 billion. The company was forced to file for Chapter 11 on failing to cope with the downturn in the U.S. economy and the credit crunch since the second half of 2008 that caused industry-wide sales to plunge.
 
 

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