US: GM to Take on $3 Billion in Debt to Fund Pensions Moved to Peugeot
General Motors expects to raise about $3 billion in debt to fund pension obligations it plans to transfer to Peugeot as part of the sale of its European business, said finance chief Chuck Stevens.
The US auto maker on Monday said it had agreed to sell its European operations, including its Adam Opel AG subsidiary, for about $1.4 billion, withdrawing from a region where it hasn’t made a profit in more than 15 years.
The company has European pension liabilities of $9.8 billion on its balance sheet, of which $6.5 billion is underfunded, Mr. Stevens said during an analyst call Monday. There will be an annual cash requirement of about $300 million to fund the UK and German pensions that remain with GM, he said.
Full Content: The Wall Street Journal
