Cavalry,
Aren't you into ABTE???
Asensio & Co.: Able Fails to File Form 10Q and Its Auditors Resign
September 15, 1998 8:28 AM EDT
NEW YORK, Sept. 15 /PRNewswire/ -- The following is being issued today by Asensio & Company, a member of the National Association of Securities Dealers, CRD number 31742:
Yesterday, in two unannounced filings, Able Telcom Holdings Corp. (Nasdaq: ABTE) disclosed that it could not file its Form 1OQ for the quarter ended July 31, 1998. Able also disclosed that Ernst & Young LLP, its most recent auditors, resigned effective September 7, 1998. Ernst & Young was Able's sixth auditor in the last ten years. Able failed to notify its shareholders of its auditors' resignation for seven days. These two announcements were included in SEC filings. Able has yet to directly inform its shareholders of these adverse developments.
In an obvious case of selective disclosure, on September 11th, Able issued a press release that did not mention that its auditors had resigned or its inability to file the Form 1OQ. Instead, Able announced it had concluded its financing terms with WorldCom, Inc. Even in disclosing financing terms, Able failed to provide material, adverse information. Able failed to disclose the conditions of the new loan, the amount of receivables it had collected and paid to WCOM, and the amount of NT's losses used to reduce the purchase price.
Able has also not disclosed the circumstances of its $10 million, 12% Senior Subordinated Notes ("Note"). First, it failed to disclose that the WCOM debt violated the Note's convenants and required a default waiver, which led to Able's obligation to repay the Notes in full on August 31, 1998. Now Able has failed to disclose whether it made the Note payment or defaulted.
Asensio & Company is a New York-based institutional investment bank specializing in corporate valuations and equity research. The firm has recommended the sale and short sale of Able shares. The firm sees no possible residual value for Able shares in excess of Able's debt and preferred obligations. Asensio & Company specializes in investigating fraudulent stock promotions and publishing research on grossly overvalued companies. Asensio & Company's published research reports are available on its Internet home page located at asensio.com.
This report should not be construed as an offer to sell or solicitation of an offer to buy any securities. Opinions expressed are subject to change without notice. This report has been prepared from original sources and data which we believe to be reliable, but accuracy is not guaranteed. This research report was prepared by Asensio & Company, Inc., whose stockholders, officers and employees may from time to time acquire, hold or sell a position in the securities mentioned herein. Asensio & Company, Inc. may act as principal for its own account or may sell or buy to or from its customers the securities described herein. Asensio & Company may from time to time perform investment banking or other services for, or solicit investment banking or other business from, any company mentioned in this report or its affiliates. SOURCE Asensio & Company
c PR Newswire. All rights reserved.
KJC |
