Friday, April 24, 2009
WASHINGTON (AP) — General Motors is getting another $2 billion in federal loans, while Chrysler is trying to work out a deal to keep it out of bankruptcy courts.
The Treasury Department says it has provided General Motors Corp. with more money in federal loans as the giant automaker struggles to restructure. The Treasury said that the payment was made to GM on Wednesday and provides working capital to the company.
Meanwhile, with a government-imposed deadline for massive restructuring less than a week away, Chrysler LLC and Treasury Department officials are still holding out hope that they can reach deals to keep the troubled automaker out of bankruptcy courts, two people briefed on the talks said Friday.
The wounded automaker already is living on $4 billion in government loans and could get another $500 million in temporary financing. Chrysler must take on Fiat Group SpA as a partner, cut debt and reduce labor costs by Thursday if it wants an additional $6 billion.
A government report revealed earlier this week that the Treasury was prepared to provide GM with up to $5 billion more in federal loans and Chrysler with up to $500 million more in bailout support as they race against deadlines to restructure.