Financial Times FT.com

GMAC bond repayment key test for carmakers

By Aline van Duyn and Nicole Bullock in New York and Bernard Simon in Toronto

Published: October 24 2008 19:40 | Last updated: October 24 2008 19:40

The hard-hit US car manufacturers are facing an enormous financial test: whether or not General Motors’ financing arm will be able to repay $1bn of debt due on January 14.

The fate of the January GMAC bond has become a focal point for debt market investors who are concerned about the carmakers’ cash positions next year.

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