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Article: Suppliers fear "avalanche' if GM auditors issue warning.(General Motors Corp.)
- Article from:
- Crain's Detroit Business
- Article date:
- March 2, 2009
- Author:
CopyrightCOPYRIGHT 2009 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: DAVID BARKHOLZ AND RYAN BEENE
Suppliers heavily reliant on General Motors Corp. business could be in for double trouble if GM's auditors issue a going concern warning against the automaker, said Original Equipment Suppliers Association CEO Neil De Koker.
The warning makes it more likely that supplier auditors will see GM receivables at risk and issue their own going concern warnings on their supplier clients, De Koker said. "That could create an avalanche.
A going concern warning is given when auditors have "substantial doubt about a company's ability to survive its financial crisis, said Greg Coursen, director of professional standards ...