In its audit of the company's financial statements for the fiscal year that ended Dec. 30, Deloitte & Touche said it based its opinion on the Warnaco Group's working capital deficiency and its noncompliance with certain covenants of its long-term debt agreements as a result of losses in 2000.
The company had already received a waiver of certain financial covenants in April through May 16.
The Warnaco Group Inc., whose shares have fallen 92percentt in the last year, said yesterday that it received a waiver by its lenders of certain financial covenants through May 16.
Last week, Warnaco received a waiver from its lenders of certain financial covenants through June 16 to avoid default on some debt payments.
The primary reason lenders look for this constant level of detailed reporting is to closely monitor the finances of the company — specifically, with regard to ensuring certain covenants are not breached.
Once the bellwether of the assisted-living industry, Sunrise Senior Living, based in McLean, Va., has violated certain covenants imposed by its lenders on leverage ratios and has a deadline of Jan . 31to restructure its line of credit.
Other possible motivations for earnings management include the need to maintain the levels of certain accounting ratios due to debt covenants, and the pressure to maintain increasing earnings and to beat analyst targets.
On Thursday, shares of the casino operator plummeted 32.7% after its auditor said it was in jeopardy of breaching certain financial covenant requirements and needed to raise capital.
On Thursday, Las Vegas Sands shares plummeted 32.7%, or $3.81, to close at $7.85 after the casino operator's auditor said it was in jeopardy of breaching certain financial covenant requirements and needs to raise capital.
On Thursday, shares of casino operator Las Vegas Sands plummeted 34.1%, or $3.97, to trade at $7.69, at midday in New York, after the casino operator's auditor said it was in jeopardy of breaching certain financial covenant requirements and needs to raise capital.
