Page last updated at 18:30 GMT, Friday, 24 April 2009 19:30 UK

GM receives further $2bn in loans

GM's Hummers
GM has been struggling with falling demand in the economic crisis

General Motors (GM) has received another $2bn (£1.4bn) in loans from the US Treasury, it has been announced.

The payment was made on Wednesday and provides working capital to the company, the Treasury said.

GM and fellow carmaker Chrysler have already received a combined $17.4bn in aid. No further funds have yet been made available to Chrysler.

GM has until 1 June to complete restructuring plans that satisfy the government's auto task force.

Earlier in the week, the government had signalled plans to provide a $5bn loan to GM and $500m to Chrysler.

Separately, Chrysler's lenders have made a counter-offer to the Treasury as the struggling carmaker seeks to reduce its debt.

On Wednesday the Treasury offered lenders $1.5bn and a 5% stake in a restructured Chrysler in exchange for about $7bn of debt they hold.

The lenders had initially offered to reduce the debt they hold to $4.5bn for a 40% stake in the company.

Details of their new proposal are not yet known.

Chrysler has until 30 April to seal a partnership with Italian carmaker Fiat, in order to secure more government funds to help it survive.



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