General Motors 2010 Annual Report Download - page 192

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
March 2010 and December 2009 we made quarterly payments of $1.0 billion on the UST Loans. In April 2010 we repaid the full
outstanding amount of $4.7 billion using funds from our escrow account.
While we have repaid the UST Loans in full, certain of the covenants in the UST Credit Agreement and the executive compensation
and corporate governance provisions of Section 111 of the Emergency Stabilization Act of 2008, as amended, including the Interim
Final Rule implementing Section 111 (the Interim Final Rule), remain in effect until the earlier to occur of the UST ceasing to own
direct or indirect equity interests in us or our ceasing to be a recipient of Exceptional Financial Assistance, as determined pursuant to
the Interim Final Rule, and impose obligations on us with respect to, among other things, certain expense policies, executive
privileges and compensation requirements.
The following table summarizes interest expense and interest paid on the UST Loans, the loans under the UST Loan Agreement
(UST Loan Facility) and the DIP Facility (dollars in millions):
Successor Predecessor
Year Ended
December 31, 2010 (a)
July 10, 2009
Through
December 31, 2009 (a)
January 1, 2009
Through
July 9, 2009 (b)
Interest expense ................................................ $117 $226 $4,006
Interest paid ................................................... $206 $137 $ 144
(a) UST Loans.
(b) UST Loan Facility and the DIP Facility.
VEBA Notes
In connection with the 363 Sale, we entered into the VEBA Note Agreement and issued VEBA Notes of $2.5 billion to the New
VEBA. The VEBA Notes had an implied interest rate of 9.0% per annum. The VEBA Notes and accrued interest were contractually
scheduled to be repaid in three equal installments of $1.4 billion on July 15 of 2013, 2015 and 2017.
The obligations under the VEBA Note Agreement were secured by substantially all of our U.S. assets, subject to certain exceptions,
including our equity interests in certain of our foreign subsidiaries, limited in most cases to 65% of the equity interests of the pledged
foreign subsidiaries due to tax considerations.
In October 2010 we repaid in full the outstanding amount (together with accreted interest thereon) of the VEBA Notes of $2.8
billion, which resulted in a gain of $198 million included in Gain (loss) on extinguishment of debt.
The following table summarizes interest expense on the VEBA Notes (dollars in millions):
Successor
Year Ended
December 31, 2010
Interest expense ................................................................................ $166
Canadian Loan Agreement and EDC Loan Facility
On July 10, 2009 we entered into the Canadian Loan Agreement and assumed a CAD $1.5 billion (equivalent to $1.3 billion when
entered into) term loan maturing on July 10, 2015. In March 2010 and December 2009 we made quarterly payments of $194 million
and $192 million on the Canadian Loan. In April 2010 GMCL repaid in full the outstanding amount of the Canadian Loan of $1.1
billion.
190 General Motors Company 2010 Annual Report