General Motors IPO might generate some major payments for the installment loans Gm obtained via taxpayers

For a long time, this has been predicted that General Motors to file for an IPO. The exact facts probably will not be out for some time, but a General Motors IPO has recently been filed. Up to now, what exactly is for certain is that Gm will offer preferred shares, but how numerous shares is uncertain. The business will get some debt settlement relief from it, and also the U.S. Treasury is visiting the some of their debt from Gm wiped clean. It will get the company closer to freedom, and maybe get it some large time money quick.

General Motors Initial Public Offering filed for

On Wednesday, Aug. 18, GM filed for the General Motors IPO. The IPO might be quite the instant cash, as outlined by the New York Times. The company could be offering preferred shares. However, Gm hasn’t announced the total number of shares the business could be selling. Chairman and CEO Ed Whitacre had previously announced that he would retire once the business was back on track, which he lately announced he was going to do by the end of the year. This initial public offering could settle an awful lot of debt.

Debt elimination a huge inspiration

Among the many benefits of this sale of shares, and re-listing of General Motors, will be paying down a large part of the installment loans from the Treasury. According to CNN Money, the Treasury has agreed to sell some of the government’s stake in General Motors. Currently, the U.S. Government holds 60.83 percent of General Motors shares, and also the Canadian government holds a further 11.67 percent. GM has paid the Treasury back about $7 billion so far.

Back in black

A good portion of GM’s debt will likely be wiped away with the IPO. GM is posting profits again, so it is not as if General Motors will need an additional cash till payday from the working class again. They nevertheless owe $67 billion though, and the IPO would have to clear at least that for the working class 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/