GM regains full control of Opel after paying back emergency loan

General Motors Company has regained full control of its Opel brand after paying back 1.5 billion euro in emergency loan including interest. The move dissolves a trust that held a 65 percent stake in the European carmaker.

“The shares in Adam Opel GmbH were returned to GM,” the German economics ministry said in a statement on Monday.

GM lost majority control of Opel in June, when the German government agreed to provide the Detroit automaker with a 6-month emergency loan to Opel hours before GM filed for a pre-packaged bankruptcy.

The main idea behind the trust was to monitor Opel’s liquidity and oversee the sale of a majority stake to a new investor. Earlier this month GM” board of directors decided to keep Opel and restructure it, terminating to plans to sell the brand to Magna International.

– By: Stephen Calogera

Source: Reuters