The German government has agreed with a group of state-owned banks to provide bridging loans for General Motors’ Opel/Vauxhall unit to help the carmaker maintain liquidity through the third quarter of this year, giving it more time to complete negotiations with potential new owners.
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The move was confirmed by the European Investment Bank and came just 24 hours ahead of today’s deadline imposed by the German government for bidders to supply their business plans for Opel/Vauxhall operations.
Fiat and Canadian supplier Magna International have previously said they want to acquire Opel/Vauxhall’s operations while German newspapers have speculated that US investment fund Ripplewood Holdings is also planning a late bid.
Fiat plans a three-way merger with Chrysler and GM’s Europe and Latin American operations. Magna is bidding for Opel with Russian partners.
The German government is also looking at a trustee plan that could protect Opel assets from GM creditors if the US parent company files for bankruptcy. The US government has given GM until 1 June to restructure or file for bankruptcy.
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