UPDATE:Germany:To Back GM Opel Plan Best For German, EU Sites
13 May 2009 - 1:04AM
Dow Jones News
Germany's economics ministry said Tuesday it has agreed with the
workers' council of General Motors Corp.'s (GM) German unit Adam
Opel AG to only back the investor in GM's European operations which
provides the most bearable restructuring model for GM's local
sites.
Earlier Tuesday, Economics Minister Karl-Theodor zu Guttenberg
and his state secretary Jochen Homann met with the heads of Opel
sites' workers council.
"All participants emphasized the joint effort that that solution
will be accepted after an unbiased examination of all yet to
presented company and restructuring plans that has the most
bearable solution for the future of the German/European sites," the
statement said.
The ministry also stressed that if GM were to file for Chapter
11, the company must remain "capable to act" and this "mustn't
pressure to any premature decisions."
The ministry reiterated that in case of an insolvency, it favors
a model that would see GM's shares in Opel being temporarily handed
over to a trustee, who would protect the interests from creditors
while a banking consortium could give the company bridge
financing.
"A temporary transfer of General Motors shares to a trustee
would help to preserve the interest of creditors as well as of the
company," the statement said. "If interim help should become
necessary before a final agreement with an investor has been found,
the trustee model is an indispensable precondition to be able to
decide about a possible use of guarantees."
Zu Guttenberg said in the same statement that he will lobby for
the "most economically and legally sustainable model" for Opel.
Klaus Franz, the head of Opel's workers' council, said in the
same statement that zu Guttenberg told them he hasn't yet made a
preliminary decision about a possible investor in Opel.
Italian car maker Fiat SpA (F.MI) has presented a plan for a
possible takeover of GM Europe, aiming to forge a global car
alliance and plans to enter this new company free of debt. Canadian
car parts manufacturer Magna International Inc. (MGA) has also
expressed interest in bidding for Opel, with Russian automaker OAO
GAZ Group (GAZA.RS) Tuesday confirming its interest in
participating in a consortium with Magna.
Web site: www.bmwi.de
-By Andrea Thomas, Dow Jones Newswires; +49-30-288-8410;
andrea.thomas@dowjones.com