GM auditors raise the specter of Chapter 11 By TOM KRISHER, AP Auto Writer Tom Krisher, Ap Auto Writer 2 hrs 39 mins ago
DETROIT – General Motors Corp.'s auditors have raised "substantial doubt" about the troubled automaker's ability to continue operations, and the company said it may have to seek bankruptcy protection if it can't execute a huge restructuring plan.
The automaker revealed the concerns Thursday in an annual report filed with the U.S. Securities and Exchange Commission.
"The corporation's recurring losses from operations, stockholders' deficit, and inability to generate sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue as a going concern," auditors for the accounting firm Deloitte & Touche LLP wrote in the report.
In pre-market trading, GM shares fell 18 percent from Wednesday's close, to $1.80.
GM has received $13.4 billion in federal loans as it tries to survive the worst auto sales climate in 27 years. It is seeking a total of $30 billion from the government. During the past three years it has piled up $82 billion in losses, including $30.9 billion in 2008.
The company faces a March 31 deadline to have signed agreements of concessions from debtholders and the United Auto Workers union to show the government it can become viable again. On Feb. 17 it submitted the restructuring plan to the Treasury Department that includes laying off 47,000 workers worldwide by the end of the year and closing five more U.S. factories.
GM said in its filing that its future depends on successfully executing the plan.
They should have just let GM fall. That is what capitalism is. As these corporate giants fall, it makes way for a new generation of creatove business men/women to step up to the plate and rebuild. Bringing in new innovative ideas. That is capitalism.
The bail out is just creating a governmental false wealth. Just like what has been happening over the last decade or so. People buying homes that they couldn't afford. People charging huge amounts on their credit cards. They were financially way over their head with no means to pay. None of it is real. If this continues, as we are seeing that it is, it is just a matter of time for it to all collapse.
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
GM shares fall to 1933 value NEW YORK — General Motors Corp. shares fell to their lowest point in more than 75 years Friday, as investors fretted that the ailing automaker may be forced to fi le for bankruptcy protection despite government help. GM shares hit a low of $1.27 in late morning trading before rebounding to close down 41 cent, or 22 percent, at $1.45. The low point matched a low set May 4, 1933, according to the Center for Research in Security Prices at the University of Chicago. The price is adjusted for splits and other changes. GM said in a statement Friday that it has not changed its intention to avoid a bankruptcy filing, and that an out-of-court restructuring remains its best option to survive the worst auto sales climate in 27 years. The Detroit automaker lost $30.9 billion last year, is living on $13.4 billion in U.S. government loans, and is seeking up to $30 billion.
use the system created for bad business choices.....duh....ya'll lobby for this crap and ya'll made it.....must be a poor system....well, who do we get to listen too and learn from?.......certainly not the 'leaders'.......I'd say they all got caught out in the rain without an umbrella.......
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
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