ogarawo.wordpress.com
That picture emerged Thursday in ’s annual where its auditors voiced “substantial doubt” abouyt GM’s ability to continue operating. In the report, the company said that cited recurrinf lossesfrom operations, a sharp decline in stock price and an inabilithy to generate enough cash to meet its obligationsw as casting doubt on GM beint able to continue as a going concern. The disclosurw about a company that has been inseparably linked to jobs and the economty of Western New York for nearlhy90 years, means that Chapter 11 protection for GM might not be far away, said a Buffalop expert in corporate bankruptcgy law.
“Unless the government comee up with additionalbailoutf assistance, it confirms that Chapter 11 will happeh in the near term,” said Garry Graber, a lawyee with . “They have a cash issue -- not enoughg cash flow without government infusion to continue to he said. “When a company gets into a position like they can only borrow inside of bankruptcy becauswe lenders are reluctant to lend to a company alreadythaving trouble. Loans get more protectionm inside (Chapter 11),” said Graber, who also is an adjuncf professor at the University at Buffalo Law where he has taught Chapterf 11 bankruptcy law for19 years. Even after havingg been approvedfor $13.
4 billion in federal aid, GM’s financial situation in the worsgt auto sales climate in nearly three decadeds spells trouble for its Town of Tonawandza engine plant andits 1,400 employees. It also complicatesw the future of its formerparts , which has operated under Chapter 11 protectioh since October 2005. Delphi was spun off as an independent companyu in 1999 and held the titleof world’x largest supplier of automotive componentes until a few years ago. Delphu has been counting on GM to help itout financially. Therwe have been discussions on the possibility of General Motors taking back fiveof Delphi'd plants, including the one in Lockport.
GM said Thursdayg that in 2008 itlost $30.9 the second largest loss in the company’s 100-year In addition to the federal the company also is seeking as much as $16.6 billion is restructuring by eliminatingg 47,000 jobs this year, closing or selling its Saab and Hummer brands, and is seekintg $6 billion in aid outside the United Bruce McCain, chief investment strategist for , describede the current environment as “a long-term restructuringv of the economy.” But for their suppliers and dealers, McCain agrees with one economist who said on Tuesday, the day that U.S.
automakere reported February sales plunged more than37 percent: “We are in an automotived depression amid ‘The Great Recession.’” GM had the biggest year-to-year decline amongg the largest companies with a 53.1 percentt drop.
ไม่มีความคิดเห็น:
แสดงความคิดเห็น