GM Leading Dow Lower as Auditor Doubts the Automaker Will 'Remain a Going Concern'
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Shares of General Motors (NYSE: GM) are leading the DJIA lower this morning, following reports that the company's auditor has formally announced a "substantial doubt the struggling auto maker can remain a going concern". The stock most recently traded at $1.88, down 14.5%, or $0.31, from yesterday's closing price.
The auditor, Deloitte & Touche, made the comments in GM's annual 10-K report, which was filed earlier after a slight delay. The auditor cited the automakers massive losses from operations, its negative net worth and issues with generating enough cash in order to continuing operating.
Also in the 10-K, GM responded to the concerns with: "If we fail to do so for any reason, we would not be able to continue as a going concern and could potentially be forced to seek relief through a filing under the U.S. Bankruptcy Code..."
The auditor, Deloitte & Touche, made the comments in GM's annual 10-K report, which was filed earlier after a slight delay. The auditor cited the automakers massive losses from operations, its negative net worth and issues with generating enough cash in order to continuing operating.
Also in the 10-K, GM responded to the concerns with: "If we fail to do so for any reason, we would not be able to continue as a going concern and could potentially be forced to seek relief through a filing under the U.S. Bankruptcy Code..."
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