An auditors report indicates that GM will likely have to enter chapter 11 bankruptcy. It is highly unusual for an auditor to publicly publish that information. GM must be far worse off than thought. According to the report, GM would need a massive restructuring plan to survive. Whatever happens, the remaining company will not be the GM your parents knew. Since the UAW have only offered token concessions in negotiations, the best thing for them would be a structured bankruptcy. The taxpayers have put enough money down this rat hole.
GM's auditors raise the specter of Chapter 11
Mar 5 05:24 PM US/Eastern
By TOM KRISHER
AP Auto Writer
DETROIT (AP) - Of all the words in General Motors Corp.'s 402-page annual report, none is more jarring than two written by the company's auditors: "Substantial doubt."
The doubt, according to Deloitte & Touche LLC, is about whether GM can overcome its staggering losses and generate enough cash to stay in business, or remain a "going concern" as accountants would say.
GM concedes in the report filed Thursday that it's on the edge of bankruptcy and won't be able to avoid it unless it gets more government money and successfully executes a huge restructuring plan.
It's no surprise that auditors would question GM's viability. The Detroit-based behemoth lost $30.9 billion last year, is living on $13.4 billion in government loans, and is seeking up to $30 billion as it tries to survive the worst auto sales climate in 27 years.
But the auditors' comments are serious because the threshold for raising such concerns is tilted heavily in favor of companies, and often they can negotiate them away, said John Pottow, a University of Michigan Law School professor who specializes in bankruptcy.
"If you get a qualified going concern audit letter like this, that suggests you are in extreme financial distress and very likely may file for bankruptcy," he said. (excerpt) read more at Breitbart.com
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