Troy, MI, May 13--Auto parts and carpet supplier Collins & Aikman said its chief executive resigned, it faces significant near-term liquidity issues, and any prior 2005 financial forecasts should not be relied on.
Collins & Aikman said it has started a search to replace Chief Executive and Chairman David Stockman and obtained waivers to address immediate liquidity issues arising from the credit downgrades of Ford Motor Co. and General Motors Corp. to junk status, which in turn strained its receivables facility.
Collins & Aikman said a board investigation into its accounting for supplier rebates is ongoing, but previous corrections will likely be understated. It is also reviewing company forecasts for the first quarter, related matters and other matters that have come up as part of the investigation.
Charles Becker, a former director, will serve as acting chief executive, Collins & Aikman said.
