Some Companies Unable to Meet SEC Attestation Requirement

Last week's deadline came and went. Nine hundred forty-seven companies were asked by the Securities and Exchange Commission (SEC) to provide CEO/CFO certification of their financial statements by 5:30 p.m. EST Wednesday, August 14. Although a few stragglers have yet to be checked off the list as either complying with the SEC request or being unable to comply, most of the companies have turned in their sworn statements attesting to the accuracy of the firm's financial statements.

To date, 12 companies have indicated they are unable to comply with the order. Not surprisingly, three of those 12 are Enron, WorldCom, and Adelphia. Each of these companies has already admitted to accounting irregularities in their recent financial statements.

The current list of companies not providing CEO/CFO certification is as follows:

  • ACT Manufacturing Inc. - company is under Chapter 11 bankruptcy protection and is reportedly seeking a buyer
  • Adams Resources & Energy Inc. - undergoing SEC inquiry, plans to hold off on certifying statements until inquiry has been resolved
  • Adelphia Communication Corporation - has filed for bankruptcy; founder and his sons have been charged with conspiracy for removing billions of dollars from the company for personal uses
  • Alaska Air Group Inc. - planning to restate previously-filed financial statements
  • CMS Energy Corp. - CEO recently resigned over scandal over phony energy trades with Dynegy Inc. and Reliant Resources Inc. designed to artificially inflate revenue
  • Dynegy Inc. - under federal investigation for trades with Enron and CMS Energy, accused of manipulating power markets in California; officers indicated they were unable to vouch for financials due to pending results restatement
  • Enron Corp. - filed for bankruptcy in late 2001, still reeling from disclosures of accounting irregularities, has yet to replace former auditor Arthur Andersen LLP
  • Gemstar-TV Guide International Inc. - currently reviewing methods of revenue recognition, has announced plans to restate 2001 financials, has discussed possible restructure of management
  • The LTV Corporation - once the nation's second largest steel maker, the company filed for bankruptcy in 2000, having gone through a bankruptcy in the 1990s as well; most of the company's assets were bought this year by International Steel Group Inc.
  • McLeodUSA Incorporated - plans to restate 2001 financials; recovering from bankruptcy
  • TruServ Corporation - planning to file additional statements with SEC, firm has not indicated whether officers will certify those statements
  • WorldCom Inc. - filed the largest ever U.S. bankruptcy in June, 2002

You can examine the complete list of the 947 companies, along with links to their financial statements and officer certification statements on the SEC Web site.

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