Goodyear to Take Big Accounting Charge

Goodyear Tire & Rubber Co. said it would reduce shareholders’ equity by $2.4 billion because of an accounting charge and an increase in its pension liabilities.

The charges will not affect Goodyear’s cash flow.

The $2.4-billion reduction puts its net worth below levels required by its loan covenants, but Goodyear said its lenders had waived compliance with those rules through April 4, the deadline set for Goodyear to renegotiate its loans.

Shares of Akron, Ohio-based Goodyear rose 15 cents to $4.07 on the New York Stock Exchange.

From Reuters