OTTAWA - General Motors is drawing $500 million out of the emergency fund promised by the Canadian and Ontario governments as it works to complete its restructuring plans.
The governments say the interim bridge loan can only be used for working capital while the company finalizes its plan.
General Motors has until June 1 to provide Ottawa and Ontario with a viability plan and secure billions of dollars in funding.
The governments promised $4 billion in emergency aid in December to help keep GM and Chrysler afloat amid slumping sales.
But they rejected an initial GM plan in March and asked the company to do more to prove it can continue operating in a competitive way.
The interim loan will be provided through Export Development Canada, and the federal government will provide two-thirds of the money.
Ontario will contribute the remaining one-third.
Chrysler submitted its restructuring plans last week, securing a total of $3.8 billion in government loans.
