In an effort to repay the US Treasury, General Motors has announced it is prepared to buy US$2.1 billion shares, after the company’s initial public offering (IPO), to contribute paying off government debt.
General Motors owed the US federal government $49.5 billion after it was bailed out of bankruptcy on June 1, 2009. GM has so far repaid $6.7 billion, this last repayment, plus $700 million in dividends and interest, would bring the total to $9.5 billion.
The car maker also plans to contribute $6 billion to its US hourly and salaried pension plans. GM has said it will take place after the initial public offering some time next month.