Industry News
Bank – GM will need $8.7bn over next two years to refinance debt
15th May 2008
General Motors will need to raise about $9 billion over the next two years to refinance its debt, and may seek more to cover close to $11bn in working capital as it faces production ‘headwinds’ and commodity price increases, Lehman Brothers analyst Brian Johnson has said, in a note reported yesterday by Reuters and Automotive News.
"Last week, Fitch Ratings said both GM and Ford will continue to face heavy cash drains in 2008 and are likely to burn cash through 2009 unless industry sales rebound. GM will likely see its liquidity eroded due to operating losses in the North American market and restructuring costs, the corporate ratings agency Fitch said, adding that GM faces the risk of another ratings adjustment.
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