GM to Start Repaying Government Loans Despite Third Quarter Losses

General Motors filed for Chapter 11 bankruptcy on June 1, 2009 after losing $6 billion between the months of January and March, which increased the corporation's total losses since 2005 to a staggering total of $88 billion. G.M. announced on Monday that they will begin repaying government loans in quarterly installments to U.S., Canadian and Ontario governments starting in December.

According to Bloomberg.com, General Motors announced that it generated $3.3 billion in cash during the third quarter of 2009 but still managed to lose $1.15 billion. General Motors Chief Executive Fritz Henderson revealed that the third quarter loss was substantially less than the losses the corporation had been experiencing in the past and the $1.15 billion turned out to be less than initial projections from their bankruptcy plan.

In a statement provided during a news conference that was held at company headquarters on Monday, Henderson said, "We are ahead of the bankruptcy plan, not only in operations, but with some contingencies we provided for that we have been able to manage. Given our liquidity position, we felt strongly that we could start repaying that loan now."

The total amount of debt that is owed by General Motors is $17 billion, which includes $9.4 billion that needs to be repaid to U.S., Canadian and German governments, according to Bloomberg.com.