GM Paying Down Debt, Other Obligations by $11 Billion
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General Motors Co., preparing for an initial public offering, plans to reduce its debt and other obligations by $11 billion, cutting interest costs and preferred dividends by $500 million a year.
The automaker also has paid $2.8 billion to the United Auto Workers retiree health-care trust, according to a statement on the company’s website. Detroit-based GM will buy back $2.1 billion of preferred stock from the U.S. Treasury and contribute at least $6 billion in cash and stock to hourly and salaried pension funds after its IPO.