Automaker General Motors Co. (MTLQQ.PK) plans to pay back its loans taken from the United States and Canadian governments earlier than expected, and would likely make an announcement on Monday when it releases its financial results for the first time since emerging from bankruptcy, media reports said quoting sources familiar to the matter.
GM plans to begin paying back a $6.7 billion loan it owes the U.S. government starting late this year, putting it on track to potentially repay the entire note by the middle of 2011, according to the reports.
GM is likely to repay $1 billion per quarter to the U.S. Treasury, with its first repayment at the end of December, as the company has outperformed its financial objectives during its bankruptcy period and also after emerging from Chapter 11 protection in July, the reports added.
The automaker is also expected to reportedly announce on Monday that it will pay $200 million per quarter to the Canadian government.
GM could alter its payment schedule on the note after it issues an IPO if found required. GM chairman Edward Whitacre Jr. had said last week that the timing of any initial public offering remains uncertain and that it depends on it returning to profitability. However, it is said that the company may not launch an IPO until after the entire $6.7 billion note is paid.
MTLQQ.PK closed Friday's regular trading at $0.5610 on the OTC.
For comments and feedback: editorial@rttnews.com