Magna-Opel deal OKed – GM finances even shakier

Canadian auto parks maker Magna has the OK from all sorts of concerned parties to buy GM’s European subsidiary Opel. Actually, Magna itself will NOT be the primary shareholder; rather, than will be Russian bank Sberbank; the duo will work with Russian carmaker Gaz in some sort of consortium to extend Opel’s reach into Eastern Europe.

Fiat, another primary bidder, backed out after GM said it need an additional €300 million, or nearly $400 million, in short-term funding. Fiat head Sergio Marchionne said it was “unreasonable” to cough up the extra money without a full look at GM’s books. And, I

That last part says that while it may be helpful for GM to shed Opel, as far as going through bankruptcy here in the U.S., the demand for such much additional last-minute money makes me wonder just what’s lurking in the General’s accounting ledgers in the way of ticking time bombs, still undiscovered. It also confirms my belief that it will take far longer than 90 days from now for GM to clear bankruptcy.

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