New twist in Caterpillar accounting scandal

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US machinery manufacturer Caterpillar still owes the sellers of Chinese company ERA Mining Machinery US$150m in loan notes after it was forced to make a US$580m write-down on the value of the company.

According to filings, on 30 April Caterpillar will have to pay the first tranche of loan notes, which will be at least US$150m and could increase to a maximum total of US$232m if ERA’s profits meet specified levels.

Last month the construction giant revealed it had uncovered “deliberate, multi-year, coordinated accounting misconduct” at ERA’s Zhengzhou Siwei subsidiary and would take a goodwill impairment charge of US$580m from the US$886m it paid for ERA.

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07th Feb 2013 16:58

another failed due diligence?

cant these big firms do their jobs properly , its not just in China , ash HP about Autonomy

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