GM Burn Rate $11 Billion
Last week concerns arose over $1.4 billion in debt obligations on the part of GM.
Yesterday GM said it had enough liquidity to last out 2008.
Then GM said it would borrow and cut spending should the economy worsen: "If current adverse economic conditions persist or deteriorate further,
we would consider a wide range of possible actions to reduce our funding needs and to obtain additional liquidity."
Today, Lehman analysts note:
"should selling conditions not "materially rebound" in the second half,
GM will need to refinance close to $8.7 billion of debt coming due between now and January 2010,
as well as absorb additional cash burn of close to $11 billion. GM will also need about $10 billion in cash to operate its business over the period."
Yesterday GM said it had enough liquidity to last out 2008.
Then GM said it would borrow and cut spending should the economy worsen: "If current adverse economic conditions persist or deteriorate further,
we would consider a wide range of possible actions to reduce our funding needs and to obtain additional liquidity."
Today, Lehman analysts note:
"should selling conditions not "materially rebound" in the second half,
GM will need to refinance close to $8.7 billion of debt coming due between now and January 2010,
as well as absorb additional cash burn of close to $11 billion. GM will also need about $10 billion in cash to operate its business over the period."
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