Publicis could lose £48.6m from GM bankruptcy

Publicis Groupe, owner of Starcom and Saatchi & Saatchi, has revealed that its exposure to the losses of now bankrupt client General Motors could be up to £48.6m.

The troubled US automotive company has asked the bankruptcy court to grant “essential vendor” status to suppliers such as the Publicis Groupe agencies that work on the GM business.

It will allow the agencies, including Starcom MediaVest, to continue to work for GM and receive payments while the car company goes through its Chapter 11 restructuring.

Starcom MediaVest Group is GM’s sixth-largest unsecured creditor and is owed $121m (£75.4m). In total however, the holding company itself is owed a total of $146m (£91m).

Publicis says it expects to continue to work for GM once its sale is approved and a new company is formed.

On Monday (June 1) GM in the US filed for chapter 11 bankruptcy, while the German Government is set to agree a deal for Magna International to takeover its European arm

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