8-KMaterial AgreementsExhibits & Filings

General Motors Co 8-K Report, Material Agreement (Apr 6, 2011)

Filed April 6, 2011For Securities:GM

Summary

General Motors Company (GM) announced a significant divestiture through its wholly-owned subsidiary, GM Holdings, selling its entire equity interest in Delphi Automotive LLP (Delphi) for approximately $3.79 billion in cash. This transaction, which closed on March 31, 2011, involved the sale of 1,750,000 Class A Membership Interests in Delphi, representing 100% of GM's stake and all of Delphi's outstanding Class A interests. This sale is expected to boost GM's financial position, with an anticipated gain of roughly $1.6 billion to be recorded in the first quarter of 2011. The substantial cash proceeds will enhance GM's liquidity and be applied towards general corporate purposes. The transaction also effectively terminates GM's obligation to a $500 million loan facility to Delphi, which had not been drawn upon.

Key Highlights

  • 1GM divested its entire equity interest in Delphi Automotive LLP.
  • 2The transaction generated $3.79 billion in cash proceeds for GM.
  • 3GM expects to recognize a pre-tax gain of approximately $1.6 billion in Q1 2011.
  • 4The proceeds will strengthen GM's liquidity and be used for general corporate purposes.
  • 5The sale terminated GM's undrawn $500 million loan commitment to Delphi.
  • 6The transaction involved GM Holdings, a subsidiary of GM.

Frequently Asked Questions

The main purpose was to report GM's entry into a material definitive agreement, specifically the sale of its entire stake in Delphi Automotive LLP.

GM received approximately $3.79 billion in cash from the sale.

GM expects to record a gain of approximately $1.6 billion in the first quarter of 2011. The cash proceeds will also improve GM's liquidity.

Yes, the transaction terminated GM's obligation to a term loan facility of up to $500 million to Delphi. However, Delphi had not borrowed any funds under this facility.