09/22/08 06:44 AM
GM to draw down credit
DETROIT (AP) — General Motors Corp. said Friday it intends to draw down $3.5 billion of a $4.5 billion secured revolving credit facility for its restructuring in what it called “uncertain times in the capital markets.”
General Motors will be using the remainder of the credit facility. The company said it was making the move to have more liquidity while capital markets are under pressure.
The automaker was reacting after a week that brought the bankruptcy of Lehman Brothers, the sale of Merrill Lynch & Co. to Bank of America Corp. and a government bailout of insurer American International Group.
General Motors also said in the news release it had completed a $322 million debt to equity exchange.
