General Motors has until the end of May to get together a new restructuring plan or file for bankruptcy. However, its European unit could continue to function and pay salaries even if the U.S. parent files for Chapter 11.
“GM Europe has its own pool of liquidity,” an Opel spokesman said. “It uses these funds to pay staff wages, reimburse suppliers and make investments.”
Recently, Germany’s Sueddeutsche Zeitung paper reported that Opel and GM have reached a deal where GM would return crucial patents to Opel in exchange for the European brand to drop claims against GM.
Opel, who would not automatically get cut off from GM even if it files for bankruptcy, has requested 3.3 billion euros ($4.3 billion USD) in loan guarantees from governments around Europe.
– By: Omar Rana