General Motors Company last night said it had sold its Class A Membership Interest in Delphi Automotive back to Delphi for US$3.8bn. GM acquired the interest in October 2009 in conjunction with the creation of ‘new’ Delphi, whose predecessor company spent years in Chapter 11 restructuring.
“We are systematically delivering on our commitment to strengthen and simplify our balance sheet,” said Dan Ammann, GM senior vice president and chief financial officer from today (1 April).
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GM will report a book gain of approximately $1.6bn in the first quarter of 2011 related to the sale. Earlier this month, GM sold its Ally Financial Series A preferred stock for $1bn in a registered public offering. That will result in a book gain of $0.3bn to be recorded in the first quarter of 2011.
