General Motors Corp. met Friday with a syndicate of banks that are near to offering the automaker $25 billion in credit but failed to wrap up the deal.
The credit package for GM and its General Motors Acceptance Corp. financing arm will be syndicated among U.S. and European banks.A source close to the negotiations said Friday there were no holdouts among the banks but that getting details finalized was a process rather than an event.
GM said it had no announcement on the talks, other than confirming the use of Chemical Banking Corp. as an adviser in working out the arrangements.
According to American Banker, a trade publication, Chemical will be the lead lender in the syndicate, which will involve six lines of credit.
GM previously has negotiated terms of its borrowing individually with some 300 banks worldwide. However, downgrades in its debt rating have stripped GM of its ability to dictate borrowing terms.
The automaker's huge losses in recent years are forcing a massive restructuring of its money-losing North American operations. Those changes began to pay off with its 1992 losses in North America falling to $4.5 billion in 1992 from $7.9 billion in 1991.