GM CEO: Cash Position Allows Investment Into Business

General Motors Co. on Monday said its cash pool sits at $42.6 billion, $17.4 billion of which is already committed to existing liabilities.

The auto maker, in its first post-bankruptcy release of financial results, reported positive cash flow since emerging from bankruptcy protection in a reversal from massive cash burn before GM's government bailout.

But the company warned its cash flow will again be negative in the fourth quarter, when it will pay out $2.8 billion to former parts arm Delphi Corp. (DLPIV) and begin repaying U.S. and Canadian government loans.

Of GM's total liquidity, $17.4 billion remains in an escrow account of government loans. The other $25.2 billion is in an unrestricted account, from which GM can draw to fund anything including restructuring and investments overseas.

The level remains well above the $11 billion to $14 billion the company has said it need to run its business.

The figures are preliminary and are likely to change as GM reworks its balance sheet to meet federal accounting standards.

But they provide a glimpse into GM's cash needs and its operations since emerging from bankruptcy protection on July 10.

Post-bankruptcy GM has $135.6 billion in liabilities, down from $214.2 billion at the former company, or Old GM.

The auto maker reported $17 billion in liabilities, including government loans, payments owned to part suppliers and other expenses. Old GM had $94.7 billion on its balance sheet as of July 9.

"The balance sheet has been significantly deleveraged," GM Chief Executive Fritz Henderson said Monday. "We expect to be in a healthy position where we can support investment into out business."

-By Sharon Terlep, Dow Jones Newswires; 248-204-5532; [e-mail]