Taxpayer private loans to be paid immediately after General Motors IPO

General Motors has ultimately put within the papers for what has been anticipated for weeks. A Gm IPO was recently been filed for, but precise specifics aren’t available yet. Gm will offer preferred shares, but the number of shares offered is not announced yet. The business will get some debt settlement relief from it, and also the U.S. Treasury is visiting the some of their debt from General Motors wiped clean. It will get the business closer to independence, and maybe get it some big time money quick.

General Motors IPO has been submitted

A Gm Initial Public Offering was filed for on Wednesday, Aug. 18. The Initial Public Offering, as outlined by the New York Times, is expected to bring quite the instant loans, and could be one of the biggest ever. Preferred shares could be in the offer. However, General Motors hasn’t announced the total number of shares the business can be selling. Gm CEO and Chairman Ed Whitacre recently announced he was retiring by year’s end, which he had said he would do when the company was back on track. An first sale of shares will probably liquidate a lot of debt.

Gm really wants to get consumer debt free

One of the benefits of Gm getting relisted is that a large payment could be made on the installment loans they got from the Treasury. As outlined by CNN Money, some of the shares in General Motors owned by the Treasury can be included in the offering. The American government has 60.8 percent of all General Motors stock, and the Canadian government owns an additional 11.67 percent. GM has paid the Treasury back about $7 billion so far.

General Motors in the black again

The Initial Public Offering is likely to get Gm even further out of debt. GM is posting profits again, so it isn’t really as if Gm will need another pay day loans from the taxpayers again. They nevertheless owe $67 billion though, and the IPO would have to clear at least that for the taxpayers to break even.

Further reading

NY Times

nytimes.com/2010/08/19/business/19auto.html?_r=1

CNN

money.cnn.com/2010/08/18/news/companies/gm_IPO/