General Motors Corp., the biggest U.S. automaker, may need to raise about $9 billion over the next two years should selling conditions not ``materially rebound' in the second half, Lehman Brothers Holdings Inc. said today. The proceeds would go ``to refinance debt, with potential additional needs for operational cash burn,'' analysts including Brian A. Johnson wrote in a note to investors. GM said yesterday it may have to borrow and cut spending if the economy worsens, a week after identifying more than $1.4 billion in new costs. Johnson estimated that Detroit-based GM will need to refinance almost $8.7 billion in debt due by January 2010, as well as absorb additional cash burn of close to $11 billion by then. GM will also need about $10 billion in cash to operate its business over the period, Johnson said. GM had $24 billion in cash and marketable securities and access to about $7 billion in undrawn U.S. loans as of March 31, at least $6 billion more than its initial projected needs for a U.S. decline, Chief Financial Officer Ray Young said yesterday. GM's cash balance will fall to $18 billion by year's end on rising materials costs and obligations such as $200 million to help end the 11-week strike at American Axle & Manufacturing Holdings Inc., Deutsche Bank analyst Rod Lache said today. GM fell 1 cent to $20.19 before the start of New York Stock Exchange composite trading. The shares declined 18 percent this year through yesterday. http://www.bloomberg.com/apps/news?pid=20601087&sid=aw9pq2pd1cUQ&refer=home Cash burn ? I thought that´s happening only to "internet bubble euophoria" companies...
This is just more bullish news, I wouldnt worry, someone will just throw $9 billion at GM..... There is no need to worry about this credit crisis, remember that....