DETROIT, US - General Motors said that it intended to draw down the remaining 3.5 billion dollars (S$5.0 billion) of its 4.5-billion-dollar secured revolving credit facility to maintain what the auto giant described as "high level of financial flexibility" at a time when the financial markets are uncertain.

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

"The revolver draw will bolster the company's liquidity position," Borst said.

Borst said the proceeds from the draw would also be available to be used to retire 750 million dollars of debt maturities coming due in October, and to pay Delphi Corporation in excess of 1.2 billion dollars as part of its reorganization efforts, assuming court approval of the revised agreements between GM and Delphi that were filed with the court earlier this month.

The US Pension Benefit Guarantee Corporation had demanded that bankrupt the Delphi Corp come up with 1.2 billion to cover pension liabilities by the end of September.

Delphi, which is based in Troy, Michigan, filed for bankruptcy and has solicited more than 11 billion dollars in financial assistance from GM, which originally spun of the company in 1999.

At the time, GM executives had said they doubted they would need to draw on the facility.