Kontent Review: Bit of a worry...: "Bit of a worry...
The discovery of huge hidden losses at General Motors' finance arm
has raised fresh fears of bankruptcy at the world's biggest
carmaker, sending tremors through the credit derivatives markets.
The struggling group asked for a filing delay after admitting to an
extra $2 billion (£1.1 billion) in accounting errors at its finance
arm GMAC, raising total losses last year to $10.6 billion. The news
triggered a sharp spike in the cost of default insurance on GMAC's
bonds, rising 75 basis points overnight.
Car-parts supplier Dana Corp. defaulted last week on $2.5 billion of
debt, following Delphi and Tower Automotive last year"
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