Detroit, Michigan - General Motors has announced that it intends to draw down the remaining $3.5 billion (all prices U.S.) of its $4.5 billion secured revolving credit facility, to maintain a high level of financial flexibility for its ongoing restructuring. In addition, GM announced the completion of a $322 million debt to equity exchange.

“Accessing the funds available to us is a prudent liquidity measure,” said GM treasurer Walter Borst. “Drawing on the revolver now improves our liquidity position at a time when the capital markets have become more challenging.”

Proceeds from the draw will be available to retire $750 million of debt maturities that will come due in October, and to pay Delphi Corporation in excess of $1.2 billion as part of its reorganization efforts. The $4.5 billion secured revolving credit facility was put in place in July 2006 with a consortium of banks, and allows GM to draw on it to fund working capital and other needs.

GM said that its plan to bolster liquidity through internal operating actions, asset sales and capital markets, announced in July, remains on track.