Opel Confirms Receipt Of First Draw Of Government Bridge Financing
02 Juni 2009 - 12:00PM
Dow Jones News
General Motors' (GM) German unit Adam Opel GmbH (AO.YY)
confirmed Tuesday that it received a first draw of the EUR1.5
billion bridge financing agreement with the German government.
The first draw amounts to EUR300 million. This responsiveness of
the German government ensures that its operations maintain adequate
liquidity as a more independent European Opel/Vauxhall company
continues normal operations, while its U.S. parent is undergoing
its court-supervised sale process.
Adam Opel GmbH had secured approval for a EUR1.5 billion bridge
loan agreement with the German government on Monday, which provides
sufficient time to finalize the partnership agreement with Magna
International Inc. Magna International and General Motors Europe
had signed a Memorandum of Understanding to continue work on
finalizing a partnership agreement for Opel/Vauxhall. With this
funding, the European operations are isolated from any financial
impact by GM's situation in the U.S.
"We're extremely grateful to the various members of the German
Government, led by Chancellor Merkel and Vice Chancellor
Steinmeier, the various German ministries as well as the federal
state governments of Hesse, North Rhine-Westphalia,
Rhineland-Palatinate and Thuringia, for their approval of this
important agreement. We are also thankful for this tremendous
responsiveness. The immediate payment ensures Opel/Vauxhall to
continue its business operations in normal course," said
Forster.