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Q+A: What next in Germany's efforts to save Opel?

Thu May 28, 2009 10:57pm IST
 
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BERLIN (Reuters) - The German government will resume its efforts on Friday to find a partner for the Opel unit of General Motors GM.N and agree temporary aid for the carmaker after a meeting collapsed with no deal.

Here are key questions and answers about the discussions:

WHAT HAPPENS ON FRIDAY?

Berlin has set a deadline of 8 a.m. EDT for the two potential investors -- Magna (MGa.TO: Quote, Profile, Research) and Fiat (FIA.MI: Quote, Profile, Research) -- to submit preliminary contracts which have also been agreed with GM and the U.S. Treasury.

Berlin has demanded the contracts contain a commitment to the creation of a temporary trustee for Opel and for bridge financing to protect Opel's assets from U.S. creditors if GM files for bankruptcy.

The financing, to allow Opel to continue operations until a partner is found, would amount to about 1.5 billion euros.

Time is pressing as the German government wants its trustee vehicle to be agreed before GM files for bankruptcy, which is likely to take place in coming days.

If there are contracts on the table, negotiations between the German government and officials from GM and the U.S. government will resume at 10 a.m. EDT. Berlin does not know if it will receive one, two or none of these contracts.

WHAT IS THE STICKING POINT?  Continued...

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