General Motor Bankruptcy Looms

The filing also disclosed that GM will not repay the loans it has already received from the government or much of the additional federal aid it will get as part of the bankruptcy.

The government has already given GM $19.4 billion to fund operations and cover losses this year, and total help is expected to exceed $50 billion.

GM will pay back $8 billion of that sum. The government will also receive $2.5 billion in preferred shares of GM that pay a dividend and are more similar to a loan than stock.

from Major GM bondholders OK revised debt-equity deal, CNNMoney.com, May 28, 2009

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So that means we the taxpayers paid $40 billion dollars for GM to survive 6 more months. Okay, so WHERE DID THAT MONEY GO? After all, GM is still going bankrupt. The company did not avoid that inevitable outcome.