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General Motors Company confirmed it has taken another step to reduce its financial leverage with the completion of the $2.1 billion purchase of the GM 9 percent Series A Preferred Stock held by the United States Department of the Treasury (UST). The 84 million shares of stock were purchased on December 15 by GM from the UST at $25.50 per share; a 2 percent premium over the liquidation value.
As previously announced, the company plans to record a charge of approximately $700 million to net income attributable to common stockholders for the difference between the purchase price and the recorded value of the Series A Preferred Stock under fresh-start accounting.
GM will provide an update of its balance sheet, including current assets, liabilities, pension funding status and post-IPO ownership structure when it files its 2010 Form 10-K in early 2011.