GM of Europe announced today that it will continue to operate normally and is not included in the Chap. 11 bankruptcy filing made today by its U.S. parent. It said that it has secured approval for a €1.5 billion bridge financing agreement with the German government based on the partnership with Magna, which will allow for more time to finalize the partnership agreement.
“This has been a very intense and at times difficult negotiation over the past several days,” said GM Europe President, Carl-Peter Forster in a statement. “The process for a future partnership in Adam Opel GmbH has moved a critical step forward with the MOU reached with Magna International, whose leadership has shown strong commitment to this project. With the financing, even with the GM actions in the U.S., we can now confidently say to our employees, customers, suppliers and dealers that it’s business as usual as we go through the process of creating a new, more independent Opel/Vauxhall.”
Under the agreement, Opel/Vauxhall assets have been pooled under Adam Opel GmbH, with a majority of those shares being put into an independent trust.
– By: Omar Rana