General Motors secures deal to repay $2.1bn to US government

GENERAL Motors said yesterday it had reached a deal with banks for a $5bn (£3.1bn) credit facility and would repay $2.1bn to US taxpayers by buying back preferred shares after its IPO.

The announcement of the steps intended to strengthen GM’s balance sheet come just days before bankers are expected to begin a road show for potential investors in the initial public offering of the top US automaker.

The moves, which will save GM an estimated $500m in annual interest costs, moved the automaker a step closer toward a full payback to US taxpayers and marked the most significant action the company has taken since Dan Akerson became CEO in September. GM was restructured in 2009 with $49.5bn in funding from the US Treasury.