2008-05-08 — bloomberg.com
General Motors Corp. and Cerberus Capital Management LP may agree to guarantee part of a $3.5 billion debt package designed to help GMAC LLC's Residential Capital unit avert bankruptcy.
The accord would mark a reversal for GM, which has said it has no obligation to support ResCap after the GMAC unit was battered by subprime mortgage losses. ResCap ranked among the 10 biggest U.S. mortgage lenders last year. The new arrangement is part of a financial plan that should provide enough liquidity for 12 months, GMAC said.
And thus more shadow liabilities appear on corporate parent balance sheets.
Comments: Be the first to add a comment
Note: Comments may take a few minutes to show up on this page. If you go to the forum thread, however, you can see them immediately.