General Motors (GM)’s well has finally run dry:
NYT: G.M. said it lost $6 billion in the first quarter as its sales around the world fell 40 per cent and revenue was cut nearly in half.
But the most concerning number is the $10.2 billion in cash that G.M. depleted in three months, the equivalent of $113 million a day. That is nearly twice the company’s rate of spending in the fourth quarter.
As of March 31, the company had $11.6 billion on hand, roughly the minimum level of liquidity that G.M. has said it needed to keep operating. Since then, the government has lent G.M. an additional $2 billion.
Making it to the June 1 restructuring deadline seems increasingly unlikely. Unless the government wants to toss another few billion down the drain.
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