White House commends GM for repaying loans, praises new CEO

From the Detroit Free Press:

WASHINGTON – The Obama administration hailed General Motors’ move today to lock in a $5.7-billion repayment of a government loan for June – even though GM was already required to pay back the loan with money from the government.

Ron Bloom, the U.S. Treasury’s auto czar overseeing the administration’s task force, also cheered the hiring of Ed Whitacre as GM’s permanent chief executive, saying the government had no role in the decision.

As part of its bankruptcy last June, paid for by $30.1 billion from the U.S. government, GM borrowed $6.7 billion and received $16.4 billion in a so-called restricted fund – money that could be spent only with federal approval. GM was given five years to pay off the loan, but had to pay back any money left in the restricted account by June 30 of this year, a deadline it could request to extend by one year.

Continue reading U.S. applauds GM move to repay $5.7B by June

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