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GM's Auditors: Company's Ongoing Viability In Doubt

Auditors for General Motors (GM) say they have "substantial doubt" that the company will be able to continue operations, according to the company's annual report. The accounting firm Deloitte & Touche LLP raised the concerns, citing recurring losses from operations, stockholders' deficit, and the ongoing inability to generate sufficient cash to meet financial obligations. "There is no assurance that the global automobile market will recover or that it will not suffer a significant further downturn," the company said in its report. GM says its ongoing survival depends on its ability to execute the reorganization plan it submitted to the Treasury Department last month, and that if it is not successful, the company could potentially be required to file for Chapter 11 bankruptcy protection. The Associated Press reports that GM has previously stated that only the federal government could provide enough financing for a Chapter 11 reorganization and that the worst-case scenario would cost the government up to $100 billion. GM has received $13.4 billion in federal loans and is seeking a total of $30 billion as part of the auto industry bailout.

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