Key GM And Chrysler Supplier American Axle May Go Under

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American Axle May Go Out of Business: Auditors
By: Reuters | 13 Mar 2009 | 08:47 AM ET


American Axle & Manufacturing Holdings' auditors have said the auto supplier may go out of business because of pressure on its main customers, General Motors and Chrysler.

"As a result of the current automotive industry environment and the uncertainty relating to the ability of GM {GM 2.4492 0.2692 (+12.35%) } and Chrysler to continue operating as going concerns ... it is uncertain whether we will be in compliance with the financial covenants ... throughout 2009," the company said in an SEC filing on Friday.

"Should (the company) fail to be in compliance with these covenants and we are unable to obtain a waiver or amend these covenants, we may be unable to continue as a going concern."

A $30 stock in mid-2007, American Axle's {AXL 0.72 -0.03 (-4%) } share price has languished below $1 through the month of March, falling as low as 26 cents on Monday.

Last week, the company was warned by the NYSE that it might be delisted, a factor it also cited as putting pressure on its ability to stay afloat. GM and Chrysler received a $17.4 billion government bailout in December and have asked for nearly $22 billion more.

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http://www.cnbc.com/id/29674381