GM seeks new line of credit, market return possible
General Motors is seeking a new line of credit for 5 billion dollars as it prepares for a possible return to being listed on the stock exchange, media reports said Saturday, dpa reported.
The new line of credit is intended to help GM repay debt, convince investors that the biggest US car maker can function without government help and prepare for another sales slump, according to the Wall Street Journal and the Detroit Free Press.
GM has repaid the final 5.8 billion dollars of government loans, but the US government continues to hold a 61 per cent stake as part of last year's bailout from bankruptcy.
If GM launched an initial public offering, the government could sell some of its shares and recoup its investment.
GM's fortunes are on the upswing as it sold 11 per cent more cars in June than it did in June 2009.