12/31/2023 0 Comments Gmac finance offers![]() But they came a week after the Federal Reserve went ahead and approved GMAC's application for bank holding status, making it eligible for a portion of the government's $700 billion bank rescue package. The results of the debt exchange fell well short of GMAC's previously stated goals. On Wednesday, GMAC finished a complicated debt deal designed to raise capital and help the struggling auto and mortgage loan company ride out a historic collapse in auto sales. GMAC is 49 percent owned by GM and 51 percent owned by private equity firm Cerberus Capital Management LP. "These two managers will serve until all accrued and unpaid distributions on the Series D-1 Preferred Interests have been paid in full," GMAC said in the filing. Treasury doesn't get interest payments on its preferred shares for six straight quarters, or more than six nonconsecutive quarters, it will get two seats on an expanded GMAC management board. The exclusivity deal was effective through November 2016, according to the filing.Īlso in the filing, GMAC said the government exercised a 10-year warrant to buy 250,000 more GMAC preferred shares for a penny each. GMAC had paid GM an annual exclusivity fee and had been required to meet targets for leases and loans, the filing said. Also, high gasoline prices devalued pickup trucks and sport utility vehicles, depressing their after-lease values. Auto finance companies have lost money on leases as trade-in values have dropped due to the collapse in U.S. The filing also says GMAC won't have to provide lease financing. After the two years, GM can offer the loans through other lenders in addition to GMAC, the filing said. In the filing, GMAC disclosed that for the next two years, GM will be able to offer financing incentives such as zero-percent loans through other lenders. ![]() and is responsible for making car loans and financing dealer inventories. GMAC is the financial arm of General Motors Corp. The lender said the federal government will get 5 million preferred shares of GMAC paying 8 percent interest in exchange for its $5 billion capital injection to help GMAC avoid bankruptcy. GMAC LLC disclosed the terms of the deal in a filing early today with the U.S. ![]() vehicles, and it will stop financing leases under a complex deal to get federal aid for the troubled lender. ![]() DETROIT (AP) - GMAC no longer will have exclusive rights to provide low-interest loans to people who buy General Motors Corp. ![]()
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