One might think, given the current credit market freeze and General Motors Corp.'s well-documented financial woes, that the automaker would be a lousy candidate to receive a new mortgage right now. But apparently at least one subprime applicant could qualify for a new loan.
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According to a Detroit Free Press report the automaker is in talks to take cash out of its landmark Renaissance Center headquarters. The automaker paid off its debt on the building, which it has occupied since 1996, earlier this year, but according to the report, it is in discussions with the Detroit Police & Fire Retirement System about a potential refinancing of the complex of seven skyscrapers.
The move shows what lengths General Motors will go to as it looks to raise cash. The automaker has said it hopes to free up about $15 billion via asset sales, refinancings and cuts to help it weather the ongoing economic slowdown and revamp its lineup towards smaller, more fuel efficient vehicles.
The company last month drew down a $3.5 billion credit line, saying it wanted to grab the cash while it was available and not risk its banks withdrawing their offer. It also hopes to sell assets including its Hummer brand and its medium-duty truck business. - Lou Whiteman
See Free Press report
See Dealscape post on GM grabbing cash
See Dealscape post updating GM's efforts to sell Hummer
See Dealscape post updating GM's plan to sell the truck business
See Dealwatch: Autos
Lou Whiteman is The Deal's senior writer covering the automotive and airline industries.
