GM: Hurdle cleared in GMAC sale

NEW YORK -- The Pension Benefit Guaranty Corp. will not hold General Motors Acceptance Corp. buyers liable for General Motors' employee benefit plans, clearing a hurdle in the sale of the automaker's finance arm, according to a GM regulatory filing on Thursday.

The federal pension insurer's assurance meets one of the conditions that a consortium led by hedge fund Cerberus Capital Management [CBS.UL] had set in April, when it agreed to buy a 51 percent stake in GMAC in a deal worth about $14 billion.

The consortium received a letter from the PBGC, saying the federal pension insurer will not terminate GM's pension plans or impose liability on the buyers as a result of the transaction, GM said.

Besides Cerberus, other members of the consortium include the largest U.S. bank, Citigroup Inc., Aozora Bank Ltd., and a subsidiary of the PNC Financial Services Group, Inc., which joined the consortium recently, GM said.

Certain other conditions to closing of the deal have not yet been satisfied, GM said.

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