Read the August issue of Fixed Ops Journal, the parts,
service and collision magazine from Automotive News.

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.

ATTENTION COMMENTERS: Automotive News has monitored a significant increase in the number of personal attacks and abusive comments on our site. We encourage our readers to voice their opinions and argue their points. We expect disagreement. We do not expect our readers to turn on each other. We will be aggressively deleting all comments that personally attack another poster, or an article author, even if the comment is otherwise a well-argued observation. If we see repeated behavior, we will ban the commenter. Please help us maintain a civil level of discourse.

Email Newsletters
  • General newsletters
  • (Weekdays)
  • (Mondays)
  • (As needed)
  • Video newscasts
  • (Weekdays)
  • (Weekdays)
  • (Saturdays)
  • Special interest newsletters
  • (Thursdays)
  • (Tuesdays)
  • (Monthly)
  • (Monthly)
  • (Wednesdays)
  • (Bimonthly)
  • Special reports
  • (As needed)
  • (As needed)
  • Communication preferences
  • You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.