Delta auditor issues Chapter 11 warning
The auditor of US airline Delta has revised its annual report to include the possibility of Chapter 11 bankruptcy protection.
Link: Andersen dealt Delta blow
In its SEC filing, Delta said ‘significant events have occurred that have materially adversely affected our financial condition and results of operations’.
It also notes that its independent auditor Deloitte has reissued its report ‘to raise substantial doubt about the company’s ability to continue as a going concern’.
Deloitte wrote: ‘The company has suffered recurring losses, faces labour and liquidity issues and may need to seek protection under Chapter 11 of the US Bankruptcy Code in the near term. Such matters raise substantial doubt about the company’s ability to continue as a going concern.’