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GM’s Pension Shortfall could be Bigger than its market cap

General Motors is expecting a $35 billion pension shortfall that could delay share buyback or payments to shareholders, according to Bloomberg. The shortfall trumps the automaker’s market cap which fell to $33.1 billion last month.

GM which emerged from bankruptcy, had reported six consecutive quarterly profits and had built up its cash holdings setting off talks that the company would be buying back shares from the U.S. Treasury Department. With this shortfall at hand, dividends may be delayed.

GM’s pension plans have one of the biggest deficits among American companies and were $22.2 billion shy at the end of 2010, Bloomberg reported. The figures didn’t include a $2.2 billion stock contribution the company made to pensions in January.

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