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GMAC raises $21.2B in debt-for-equity swap
2008-12-31
NEW YORK - GMAC Financial Services LLC says it raised $21.2 billion in a debt-for-equity swap, but appears to remain shy of its capital-raising goal needed to qualify to become a bank holding company. The lending arm of General Motors Corp. says it raised $17.5 billion in the exchange offer with noteholders, while its home-loan segment, Residential Capital, raised $3.7 billion. The announcement comes after GMAC was promised a total of $6 billion in aid from the Treasury Department. That would bring the total amount of cash raised or promised to $27.2 billion -- $2.8 billion shy of the $30 billion needed for the lender to become a bank holding company. GMAC received the Federal Reserve's approval to become a bank holding company last week, but the approval was contingent on its raising at least $30 billion.
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