AKRON (Dec. 11)—Goodyear will delay filing a key form with the Securities and Exchange Commission because of possible accounting errors in Europe, which means the firm can't satisfy its agreement with the United Steelworkers of America to raise $250 million in debt and $75 million in equity-linked financing by the end of 2003.
Goodyear said it discovered it will not be able to file its amended 2002 Form 10-K/A with the SEC this year during an ongoing internal investigation which identified possible improper accounting issues in Europe. It wants to finish the review before it completes the form, which will push the filing into 2004.
Goodyear said its recently completed three-year contract with the USWA gives the union "the right, but not the obligation," to strike after going through a grievance process if the firm does not complete its financing by the end of the year, Goodyear said. The company initiated discussions with the union Dec. 10 "to explore mutually beneficial options that would include aggressively pursuing financing options, including capital market access, once the amended 2002 form is filed," the company said. It did not elaborate on what accounting mistakes were made or when the mistakes were uncovered.