Opel plans to use just EUR1.2bn of an EUR1.5bn bridge loan from the German government and is planning to retain the balance as an emergency reserve, according to reports.
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Reuters reported that CFO Marco Molinari presented this internal financing plan to Opel’s supervisory board late last week.
The Reuters report was backed up by a report in Handelsblatt newspaper that Opel planned to set aside EUR300m of the bridge loan, despite ongoing losses, in case markets should deteriorate further.
The German government made the loan to tide Opel over while it lines up a new investor, after parent General Motors filed for Chapter 11 bankruptcy protection.
It was also reported that Hesse state premier Roland Koch dismissed comments from German Economics Minister Karl-Theodor zu Guttenberg that other bidders still have a chance to overtake Magna and its consortium as preferred bidder.
“Magna emerged as the winner from the bidding process that ended on May 30. Others can only have a shot in the unlikely event that the constructive talks with Magna were to fail,” he said in an interview with the Financial Times Deutschland.
