GM Europe receives first tranche of German money

ERJ staff report (DS)

Frankfurt -- Adam Opel GmbH confirmed today that it has received the first tranche -- €300 million -- from the €1.5 billion bridge financing agreement with the German government. 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 €1.5 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.

GM Europee was keen to emphasise that it continues normal operations and is not included in the U.S. court filing or court supervised process. Also, vehicle parts suppliers and employees will continue to be paid in the normal course of business.

This is an external link and should open in a new window. If the window does not appear, please check your pop-up blocking software. ERJ is not responsible for the content of external sites.

Press release from GM Europe on finance

Press release from GM Europe on restructuring