The largest US automaker, General Motors, has recently announced it will incur a charge of around $800 million during the fourth quarter of the fiscal year ending March 31, 2015 as it decided to redeem all of its 156.1 million outstanding Series A preferred shares.

According to a statement coming from the Detroit-based automaker, the company needs to spend $3.9 billion to acquire the shares currently held by the United Auto Workers Retiree Medical Benefits Trust and Canada General Investment Corp. The stock’s preference for liquidation is at $25 a share and accrued cumulative dividends amount to 9% each year. The move is another one in the strategy to simplify GM’s quarterly financial reports and closes yet another chapter that derided from the company’s 2009 bankruptcy restructuring process. Back in the dark days of the financial crisis, GM had to be saved by taxpayer-funded programs, which implicated the US Treasury and the Canadian Trust.

The No. 1 US automaker managed to reach its best yearly sales since 2007 in 2014, but the company’s stock declined 15% overall this year. That’s mostly because of the massive string of recalls that led to safety campaigns that called back to services around 27 million cars and trucks – setting a record for US recalls.


Please enter your comment!
Please enter your name here