GMAC Financial Services today confirmed that it is in discussions
with federal regulatory authorities regarding, among other things,
seeking bank holding company status under the Bank Holding Company Act
of 1956, as amended.
As a bank holding company, GMAC would obtain increased flexibility
and stability to fulfill its core mission of providing automotive and
mortgage financing to consumers and businesses. GMAC also expects to
have expanded opportunities for funding and for access to capital as a
bank holding company.
In connection with this initiative, GMAC is considering raising and
maintaining significant amounts of additional capital to meet
regulatory requirements related to bank holding company status. In this
regard, GMAC intends to commence a private offer to exchange a
significant amount of its outstanding indebtedness for a reduced
principal amount of new indebtedness. Details of this offering will be
disclosed in the near future. GMAC cannot assure that it will become a
bank holding company, that it will undertake the private exchange
offer, or that if undertaken, that such private exchange offer will be
completed or if completed, whether it will achieve a sufficient amount
of capital to satisfy the applicable capital adequacy requirements.
“The benefits of this type of restructuring would allow us to put
additional capital and liquidity resources immediately to work in
financing consumers and automotive dealers,” said GMAC Chief Executive
Officer Alvaro G. de Molina.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any security and shall not constitute
an offer, solicitation or sale of any securities in any jurisdiction in
which such offering, solicitation or sale would be unlawful.