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Originally Posted by 8cd03gro
Uh, didn't GM post a $4.X billion USD loss in the last quarter of 2009? How is it even possible that they could think about paying back? Sounds like publicity crap to me. They said they will "could" break even this year. How can you pay off loans when you post losses consecutively and think you MIGHT break even this year?
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For the fourth quarter, GM posted a net loss of $3.4 billion on sales of $32.3 billion, but after taking out special items associated to its restructuring, the company was about $600 million short of the break-even level, said Chris Liddell, GM's vice chairman and chief financial officer.
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Not publicity crap. Much of the third quarter "loss" is part of the Chapter 11 restructuring. At the end of 09 they had almost a third amount of debt and more than double the amount of cash on hand than before the bankruptcy.
They HAVE been paying off the loans, mostly because they have been bringing in profit that they can redirect to their gov't creditors. They WILL pay off the loans, and they WILL be profitable in 2010, barring some sort of natural catastrophe that destroys the planet.
