Phoenix: Progress Toward SEC Settlement
|By Mara Lee, The Hartford Courant|
|McClatchy-Tribune Information Services|
The proposed settlement, the company said, would acknowledge that it violated laws on financial disclosure, promise not to do it in the future, and pay unspecified civil monetary penalties.
The settlement, subject to approval by commissioners in
The company announced the progress toward a settlement with regulators as part of an effort Thursday to convince bondholders to give it more time to disclose its financial performance from 2012 to the present.
It had earlier promised the bondholders, who hold
Currently, those bondholders have the right to ask for their money early if the forms aren't filed by
The bondholders who agree to the delay will receive about
Because of the accounting issues, three of
Not only does
"We appreciate the support bondholders have provided us in the past," the company wrote. It needs the lenders that hold a majority of the principal to agree by
In the request to bondholders,
It said that its ability to meet its end-of-March deadline for financial filings "is subject to a number of contingencies, including but not limited to, whether we continue to identify errors in our consolidated financial statements. ... Even if we are successful in ... obtaining a waiver from the [bond]holders, there can be no assurances that we will make all our filings with the
In an earlier disclosure, the company acknowledged that the need to restate financial results in 2012 came from "multiple material weaknesses in our internal control over financial reporting," and in this request, management acknowledged many of those accounting weaknesses have not yet been remediated.
The company said even once the financial reports are filed, they might not be the final word.
"The restatement may not be adequate to identify and correct all errors and we may discover additional errors and our financial statements remain subject to the risk of future restatement," the request said.
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