8-KMaterial Agreements

General Motors Co 8-K Report, Material Agreement (Aug 18, 2009)

Filed August 18, 2009For Securities:GM

Summary

This Form 8-K filing by General Motors Company (GM) on August 18, 2009, details significant amendments to its existing credit agreements. Specifically, GM entered into amendments and restatements for its secured credit agreement with the U.S. Department of the Treasury (UST) and its secured note agreement with the UAW Retiree Medical Benefits Trust (New VEBA). These amendments were a condition stemming from prior agreements made in July 2009, related to GM's emergence from bankruptcy and restructuring. The key impact for investors is the expansion of covenants and representations. Previously applicable to GM and its U.S. and Canadian subsidiaries, these terms now extend to GM's controlled subsidiaries worldwide, with limited exceptions. This broadens the scope of obligations and potential default triggers across GM's global operations, reflecting the company's restructured state and its ongoing financial obligations to key stakeholders like the UST and the VEBA.

Key Highlights

  • 1General Motors Company (GM) filed an 8-K on August 18, 2009, reporting on material definitive agreements.
  • 2GM amended and restated its secured credit agreement with the U.S. Department of the Treasury (UST) on August 12, 2009.
  • 3GM also amended and restated its secured note agreement with the UAW Retiree Medical Benefits Trust (New VEBA) on August 14, 2009.
  • 4These amendments were a requirement of a post-closing letter agreement entered into in July 2009.
  • 5The amendments significantly expand the scope of representations, warranties, covenants, and events of default.
  • 6These expanded terms now apply to GM's controlled subsidiaries worldwide, subject to certain exceptions, extending beyond previous U.S. and Canadian coverage.
  • 7The filing reflects adjustments to GM's financial obligations and reporting requirements following its restructuring.

Frequently Asked Questions

The filing states that General Motors Company (GM) amended and restated its secured credit agreement with the U.S. Department of the Treasury (UST) and its secured note agreement with the UAW Retiree Medical Benefits Trust (New VEBA).

The amendments expand the representations, warranties, covenants, and events of default to apply to GM's controlled subsidiaries worldwide, subject to certain exceptions. This means GM has broader obligations and its global subsidiaries are now more directly covered by these credit agreements.

The amendment and restatement of the UST Credit Agreement occurred on August 12, 2009, and the amendment and restatement of the VEBA Note Agreement occurred on August 14, 2009. The filing itself was made on August 18, 2009.

These amendments were entered into in satisfaction of a requirement under a post-closing letter agreement dated July 10, 2009, which was part of the broader restructuring and financing arrangements GM undertook following its emergence from bankruptcy.