GMAC becomes a corporation, allowing share sales

Posted on Thursday, July 2nd, 2009 at 2:58 PM EDT.

GMAC said on Wednesday that it has converted to a corporation from a limited liability company, a move that could allow the auto and mortgage lender to sell shares to the public, Reuters reported.

In a regulatory filing, the Detroit-based company said holders of common membership interests in the former GMAC LLC on Tuesday received an equal number of common shares in GMAC Inc., the news service said.  It was not immediately clear when or if GMAC might sell shares to the public, Reuters said.

GMAC has received $12.5 billion of government aid since December, when it became a bank holding company, to combat mounting mortgage losses as well as falling vehicle sales, the news service said.. GMAC now is the preferred lender to customers of bankrupt automakers General Motors and Chrysler Group LLC.

In a May 22 regulatory filing, GMAC said that if it were to go public, the Treasury Department would begin to liquidate its stake within seven years after an initial public offering, and try to shed 10 percent to 20 percent of its stake in each succeeding year, the story said. (Reuters/Automotive News)

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