GMAC Financial Services is close to getting about $3.5 billion in added aid from the U.S. government, on top of the $12.5 billion already received since December 2008, the Wall Street Journal reported.
The announcement is expected within days and will coincide with GMAC taking additional steps to absorb losses related to its mortgage operations, the Journal reported, citing people familiar with the situation.
One person told the Journal that the measure has been crafted to return the company to profitability in the first quarter of 2010.
The new capital will likely allow GMAC to avert placing its ailing mortgage unit, Residential Capital LLC, or ResCap, into bankruptcy, the Journal reported, citing these people.
As we have previously stated, GMAC has been conducting a strategic review of its business and evaluating options to address the challenges at ResCap and the mortgage operations, said GMAC spokeswoman Gina Proia in an email statement.
Critical objectives in the process would be to take actions that position GMAC for improved financial performance and to repay the U.S. government, she said.
GMAC did not detail any specific actions.
(Reporting by Kevin Krolicki and Deepa Seetharaman; Editing by Gary Hill, Bernard Orr)