Delphi consult oracle: Outlook unclear
The largest US auto parts supplier has reported that it is meeting today, May 16, with banks to begin negotiations for $2.5-3 billion in loans. Delphi made a filing with the US Securities and Exchange Commission (SEC) and has divulged that two yet-unnamed executives are embroiled in an ongoing accounting investigation. Thus far, the said investigation has claimed a total of four Delphi executives. In March its controller and chief financial officer resigned. Delphi confessed last week that it had, among other things, improperly accounted for $237 million in cash payments in warranty claims to GM. News of Delphis accounting gaffes sent its stock down $0.29, or 7.6%, to $3.51. The company has cited falling sales, production cuts at GM, high steel prices, as well as growing health care and retirement obligations as reasons for its financial woes.