GMAC has participated in the troubled assets relief programme
GMAC Financial Services has sold $5 billion of its preferred membership interests and warrants to the U.S. Department of the Treasury as a participant in the troubled assets relief programme established under the Emergency Economic Stabilisation Act of 2008.
GMAC also announced that General Motors (GM) and an affiliate of Cerberus Capital Management contributed to GMAC the $750 million subordinated participations in the $3.5 billion senior secured credit facility, as amended, between GMAC and Residential Capital in exchange for new common equity of GMAC.
In addition, GMAC announced that GM and an affiliate of Cerberus Capital Management entered into agreements to purchase $1.25 billion of new common equity. The US Treasury and GM intend to enter into an agreement for the Treasury to fund GM’s share of the new common equity.
GMAC Financial Services is a global finance company operating in and servicing North America, South America, Europe and Asia-Pacific. GMAC specialises in automotive finance, real estate finance, insurance, commercial finance and online banking. Founded in 1919 as a wholly owned subsidiary of General Motors Corp., GMAC was established to provide GM dealers with the financing necessary to acquire and maintain vehicle inventories and to provide customers a means by which to finance vehicle purchases.