GM says it plans additional 1.0 billion-dollar debt cut

PARIS: US auto maker General Motors said on Wednesday it planned to reduce its debt by a further 1.0 billion dollars (762 million euros) through the repayment of a credit owed by its South Korean subsidiary.

It said the unit, GM Daewoo Auto and Technology, would pay back the full amount this month.

The company added that with its return to the stock market it was determined to use every opportunity to bolster its financial health.

General Motors last month carried out an initial share offering worth 23.1 billion dollars, the biggest ever recorded anywhere.

Amid skyrocketing debt and plummeting sales, GM had been forced into bankruptcy protection in June 2009, when it received a 50-billion-dollar government bailout.

The IPO lowered the government stake in the company below 50 percent and recovered 11.7 billion dollars for US taxpayers.