After filing for bankruptcy reorganization that will be largely financed by U.S. taxpayers, General Motors said that as a private automaker (that will emerge from its Chapter 11 filing) it will release less financial information to the public.
“As a privately held company, it’s likely we’re not going to disclose information except to the shareholders,” Ray Young, GM chief financial officer, told reporters on Tuesday.
Young said that the ‘New GM’ is expected to eventually go public again and will resume releasing financial reports as it once did.
“We do not have to file all of the same documents that we do when we are a public company,” GM Chairman Kent Kresa said on the day the company filed for bankruptcy. “We’re going to keep that transparency exactly the same.”
GM has lost more than $80 billion in the past four years and is surviving on the $19.4 billion in government loans. It recently received $15 billion of the $30 billion it will get in bankruptcy reorganization.
– By: Omar Rana
Source: Free Press