According to a report from Bloomberg, the Canadian Government didn’t receive a final restructuring plan from General Motors Canada before lending the company billions of dollars during its financial restructuring in 2009. The information was revealed in filings from the Auditor General, which also indicated there was limited information in regards to Chrysler Canada’s restructuring.
The Canadian Government made it a condition that GM would have to send them a final restructuring plan before lending them CDN $10.8 billion in total loans to pull them out of insolvency. Despite this, governmental organizations have limited amounts of information pertaining to how the bailout funds were distributed or spent.
“Neither Industry Canada nor Export Development Canada had documents related to the use of the funds,” the Auditor General’s report said. “In the absence of detailed information on the use of the funds, Industry Canada does not know to what extent the federal government’s financial assistance contributed to the viability of Chrysler Canada and GM Canada.”
So far, the Canadian government has recovered about $3.8 billion of its loan from GM Canada. It converted about $9.8 billion of its loan into equity and still owns about 110 million GM Canada shares.