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GM Must Pay Back Loan If It Keeps Opel
BERLIN -(Dow Jones)- German Finance Minister Peer Steinbrueck Wednesday said that General Motors Co. would have to repay German government aid provided to support Opel if GM decides to keep its German unit.
GM's board of directors is due to meet Wednesday to discuss the future of Opel. Although a sale to an investor has long seemed the most likely scenario, recent speculation points in the direction of GM keeping Opel.
The German government has provided EUR1.5 billion in bridge financing to help keep Opel afloat while a deal was being hammered out for the company. The financing, and further financing, is considered contingent on whether GM decides in favor of Germany's favored buyer, Magna International Inc. (MGA).
Steinbrueck said the German government wouldn't provide any further financial guarantees if Opel plants were closed.
Belgian investment company RHJ International Inc. (RHJI.BT) has also made an offer to buy Opel, which the government does not support.
It's uncertain whether GM will make a recommendation on how Opel should go forward after Wednesday's meeting. GM's board of directors is due to meet Wednesday to discuss the future of Opel. Although a sale to an investor has long seemed the most likely scenario, recent speculation points in the direction of GM keeping Opel.
The German government has provided EUR1.5 billion in bridge financing to help keep Opel afloat while a deal was being hammered out for the company. The financing, and further financing, is considered contingent on whether GM decides in favor of Germany's favored buyer, Magna International Inc. (MGA).
Steinbrueck said the German government wouldn't provide any further financial guarantees if Opel plants were closed.
Belgian investment company RHJ International Inc. (RHJI.BT) has also made an offer to buy Opel, which the government does not support.
-By Andreas Kissler and Sarah Sloat, Dow Jones Newswires, +49 30 288 8410; [email protected].
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