Although General Motors posted a loss of almost $1.15 billion in the third quarter after completing bankruptcy proceedings in July, the company announced on Monday, November 16, 2009 that it can begin to repay its government loans.

From July 10 to September 30, GM built its reserves by an additional $3.3 billion, completing the quarter with cash on hand totaling $42.6 billion. Consequently, GM will make a $1 billion payment to the federal government in December, five years ahead of the loan's due date and plans subsequent quarterly payments.

CEO Fritz Henderson said GM' performance shows "signs of progress and some signs of stability" with a "good, strong liquidity position." Of the quarterly loss, he said the amount was much lower than what it has been and certainly better than our plan going into bankruptcy, but nonetheless, it's a loss and you can't be satisfied with it."

In the face of the loss, however, the company did see a 21 percent revenue increase to $28 billion. As of September 30, the company's debt equaled $7 billion as opposed to $94.7 billion while GM was under bankruptcy protection.

Some $13.4 billion of GM's $50 billion loan from the federal government remains in an escrow account. Some $6.7 billion of that debt is still on GM's balance sheet with the remainder converted to a 60.8 percent federal ownership of the company.