The federal government will get 5 million preferred shares of GMAC LLC in exchange for its $5 billion capital injection to save the lender from bankruptcy protection. GMAC disclosed the terms of the deal in a filing with the Securities and Exchange Commission on Friday. GMAC is the financial arm of General Motors Corp. and is responsible for making car loans and financing dealer inventories. The Treasury will get 8 percent interest on the shares. The government also exercised a 10-year warrant to buy 250,000 more GMAC preferred shares for a penny each. Without the capital injection from the government's Troubled Asset Relief Program, GMAC may have been forced into bankruptcy.
WebReadyTM
Powered by WireReady® NSI
E-Mail
Print
