DETROIT (Reuters) - General Motors Corp. (GM.N) said on Monday it had reached agreement with a bank syndicate on an amended $4.63 billion secured credit arrangement under which the automaker's allowable borrowing would drop by about a fourth in the event of a work stoppage.þþGM, which lost $10.6 billion in 2005, is in the midst of a sweeping restructuring that includes slashing 30,000 jobs and closing 12 plants.þþThe world's largest automaker said in a filing with the U.S. Securities and Exchange Commission that its banks had agreed to a secured credit facility of $4.48 billion expiring July 2011, three years later than its previous unsecured facility.þþThe company said it also retained a $152-million non-secured credit facility expiring in June 2008 after some of its lenders opted not to take the revised terms for the secured lending.þþGM had announced in late June that it was looking to negotiate a new deal with lenders, offering up collateral and other concessions in order to extend the maturity of what had been a $5.6 billion revolving credit facility.þþGM had also then said it was looking to ``remove any existing uncertainty'' about whether its banking syndicate would be obliged to honor a borrowing request in the event of an operational crisis.þþIn the Monday SEC filing, GM said that the new facility had addressed that question by specifying that ``certain work stoppages'' would cause the ceiling for its allowed borrowing to drop temporarily to $3.5 billion.þþ``In the event of certain work stoppages, the facility will be temporarily reduced to $3.5 billion,'' GM said.þþGM did not specify in the filing whether or not a work stoppage at one of its own facilities would trigger the clause.þþCompany spokeswoman Gina Proia on Monday said the extended facility ``continues to strengthen'' GM's liquidity position.þþGM is in talks with bankrupt former subsidiary Delphi Corp. (DPHIQ.PK) and its unions to lower wages and benefits. Delphi has asked the bankruptcy court to void its labor contracts, while the United Auto Workers union has voted in favor of a strike if its contracts are nullified.þþAnalysts have said a strike at Delphi could shut down GM's North American operations and force it to burn through billions of a dollars a week.þþGM said the rate for the extended facility would be the London InterBank Offered Rate plus 225 basis points at the automaker's current credit rating.þþGM secured the bank borrowing with certain North American accounts receivables, vehicle inventories from GM, its Saturn unit and its Canadian operating unit. In addition, General Motors of Canada pledged some of its plants and property and GM offered up 65 percent of the stock of the holding company for the company's indirect Mexican subsidiary, GM de Mexico, GM said.þþ
Source: NY Times
