By Rebecca Christie and Jeff Green
Feb. 16 (Bloomberg) -- General Motors Corp., which is relying on U.S. aid to survive, will get the final $4 billion of a $13.4 billion emergency loan from the U.S. Treasury tomorrow as scheduled, a person familiar with the plan said.
The Detroit automaker already received $9.4 billion in two earlier installments pledged by President George W. Bush on Dec. 19 after Congress failed to agree on its own rescue plan. GM spokeswoman Renee Rashid-Merem said the automaker hadn’t been notified of the plans.
GM must also present a progress plan to the U.S. Treasury tomorrow that shows progress in cutting labor, debt and other expenses to prove the automaker can restructure to become viable and repay the loans by the end of 2011. If GM doesn’t show progress, the loan terms allow the government to recall the money or force the automaker into a government-supported bankruptcy.
To contact the reporters on this story: Jeff Green in Southfield, Michigan at jgreen16@bloomberg.net; Rebecca Christie in Washington at Rchristie4@bloomberg.net.
Last Updated: February 16, 2009 21:59 EST
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