George S. May Business Blog

GMAC is getting another $3.5 billion — Merry Christmas!

Reuters reports that GMAC is “close” to getting another $3.5 billion from the US government. GMAC took $12.5 billion in December of last year.

The article continued that, according to “people familiar with the situation”, the announcement can be expected to come public in the next few days. In fact, one of the “familiar” people went as far as to project a return to profitability for GMAC in Q1 of next year.

The chunk of change will designated to keeping GMAC from filing Chapter 11 bankruptcy for its ailing mortgage unit, Residential Capital LLC, or ResCap, into bankruptc.

“As we have previously stated, GMAC has been conducting a strategic review of its business and evaluating options to address the challenges at ResCap and the mortgage operations,” said GMAC spokeswoman Gina Proia in an email statement.

“Critical objectives in the process would be to take actions that position GMAC for improved financial performance and to repay the U.S. government,” she said.

GMAC did not detail any specific actions.

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