Opel won't survive on bridge loan forever

Author: | Published: 1 Jul 2009

It didn’t work for Holzmann in the late nineties. But the German government is trying again, with Chancellor Angela Merkel promising a €1.5 billion ($2.1 billion) bridge loan to Opel, part of General Motors’ (GM) European operations.

And, as ever, German insolvency laws are keeping all parties on their toes.

In 1999, then German Chancellor Gerhard Schröder promised a €130 million state guarantee to troubled construction group Holzmann. But he failed to persuade...