Very recently, you must have heard the important news from AP Radio that GM has been able to exit out of the bankruptcy successfully. But, AP didn’t want to disclose the fact how much Govt and US taxpayers have to compromise to help GM out of bankruptcy. AP clearly understated the amount of Govt money that was spent.
AP also reported that GM received $19 billion to $20 billion more in federal aid on Friday, the remainder of the $50 billion it will receive. A large part of the money will be held in escrow. The following is the listing of Govt provided money to GM:
- Dec. 29, 2008; Purchase of Debt Obligation — $884,024,131
- Dec. 31, 2008; Debt Obligation with Warrants and Additional Note — $13,400,000,000
- April 22, 2009; Debt Obligation with Warrants and Additional Note — $2,000,000,000
- May 20, 2009; Debt Obligation with Warrants and Additional Note — $4,000,000,000
- June 3, 2009; Debt Obligation with Warrants and Additional Note — $30,100,000,000
If you add up Govt record plus AP report , it comes around $70 billion. Beyond all of this, the related FinancialStability.gov page reports $12.5 billion paid to GMAC, and $3.5 billion to an entity called “GM Supplier Receivables, LLC.” The latter is the unpaid amount to the suppliers that was accrued by Old GM. So the total amounts to $86 billion. If you further consider unsecured creditors’ amount, it comes close to 100 bill dollar.
The AP writers referred to a Treasury statement “crediting GM’s restructuring with saving both the automaker and ‘tens of thousands’ of American jobs.” Assuming the jobs saved number is as high as 50,000 , that would mean that this is going to cost $2 million per job saved ($100 bil divided by 50,000).Filed under Business News, Jobs | Tags: AP, Bankruptcy, Fact, Gm | Comment Below