By Greg Robb; MarketWatch ~ Oct 28, 2010

WASHINGTON (MarketWatch) -- General Motors announced Thursday that it was buying back $2.1 billion in preferred stock from the Treasury Department as part of a series of steps to reduce leverage. The purchase is conditional on completion of GM's public offering of common stock. GM /quotes/comstock/13*!gm (GM 0.00, 0.00, 0.00%) said it has repaid $2.8 billion to the United Auto Worker Retiree Medical Benefits Trust and has finalized a $5 billion five-year revolving credit facility. After the offering, GM said it would contribute at least $4 billion in cash and $2 billion in common stock to GM's hourly and salaried pension plans. GM said it also expects to end a wholesale advance agreement with a bank which dealers used to borrow to fund inventories. This will result in an estimated $2 billion increase to GM's accounts receivable balance, on average, depending on sales volume and other factors, the company said.