Dec29
GMAC, Bank Holding Co. has no details on Debt Deal.
GMAC LLC refused to reveal whether creditors had backed a $38 billion debt restructuring, despite the fact that the outcome isn't expected to disrupt the efforts by the auto and real-estate lender to become a bank holding company.
The lender, owned by General Motors Corp. and a group of private equity holders led by Cerberus Capital Management, stated that the deadline for restructuring passed at 11.59 pm Friday.
This is the forth time GMAC had extended the deadline in an effort to win support from shareholders, part of its efforts to ease its asset pressures from the property sector that sucked its life out and has hindered GM's ability to finance new auto sales.
GMAC spokeswoman Gina Proia stated yesterday "We have not made any announcements with results yet, but expect to in the near term,"
GMAC has stalled out the process and has gained some precious time last week when the Federal Reserve approved its application to become a bank holding company
As a bank holding company GMAC has secured access to the $700 billion bail out funds which allow it to sell government backed debt helping it to say afloat when it has no alternative funding sources.
It is estimated that GMAC will seek as much as $6.3 billion in government assistance.
The Federal Reserve expects that GMAC to be well capitalized on the money following its restructuring next month.
Source: Wall Street Journal
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