U.S. to Invest $30 Billion in GM as Closed Dealerships Still Not Identified

Washington DC May 29, 2009; THe AIADA newsletter reported that according to Automotive News, the Obama administration plans to inject $30 billion into General Motors on top of the $19.4 billion it has already lent as part of a sweetened offer to bondholders.

At least 35 percent of the bondholders have indicated they will approve the new GM restructuring plan, which calls for them to get a 10 percent equity stake in the new company as well as warrants to buy an additional 15 percent share.

CNN Money reports that as a bankruptcy plan appears more likely as June 1 approaches, officials at the Obama administration say that GM is likely to remain privately held and cease to exist as a publicly traded company for a period of time following bankruptcy.

The company is also declining to name specific dealerships it has targeted for closing, only reporting that approximately 1,100 will face the chopping block when their contracts expire in October of 2010, according to Automotive News.