General Motors (GM) has admitted the sale of its finance subsidiary GMAC, may be in trouble after it restated four years of financial results yesterday.
The car manufacturing giant restated the results for the years 2000 - 2004 as part of its submission to the Securities and Exchange Commission (SEC) including its 10-K/A report which details its full year results for 2005. GM says the new accounting change could affect "the ability of GM, to complete a transaction with a strategic investor regarding a controlling interest in GMAC while maintaining a significant stake in GMAC." It also suggests the changes may affect GM's ability to secure "separate credit ratings and low cost funding to sustain growth for GMAC and ResCap" as well as "our ...
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