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Technology Stocks : Blank Check IPOs (SPACS) -- Ignore unavailable to you. Want to Upgrade?

To: Glenn Petersen who wrote (2266)	7/1/2011 8:32:33 AM
From: Glenn Petersen	Read Replies (1) \| Respond to of 3862

Next of the griddle: AUTC UPDATE 2-AutoChina says to restate financial statements Thu Jun 30, 2011 6:26pm EDT * Says to restate statements 2009 onwards * Co being probed by SEC (Adds details on Chinese companies in paras 4,5,10, 11 and 12) BANGALORE/NEW YORK, June 30 (Reuters) - AutoChina International Ltd said it expects to restate its financial statements for the year ended 2009 and subsequent periods, but said it does not expect this to affect its underlying business operations. The company, which sells and leases commercial vehicles in China, said it is being investigated by the United States Securities and Exchange Commission (SEC). However, AutoChina said it has not been accused of violating any laws either by the SEC or any other party, and added that the SEC investigation is ongoing. The investigation comes at a time of increased scrutiny for Chinese companies traded on U.S. exchanges, following a rash of accounting scandals and delistings in the space. Regulators have been accused of dragging their feet on the issue while short-sellers step in and level charges of fraud, benefiting from any declines in the stock prices. A spokesperson for the SEC wouldn't comment on the investigation or confirm that one was taking place. AutoChina said it will restate results to recognize a derivative liability relating to the earn-out share provision, which was part of its initial business combination in 2009. The China-based company said it identified a material weakness in its internal control over financial reporting as of December 31, 2010 during its year-end process. The reclassification of the earn-out and its effects are anticipated material changes to its financial statements, it said, adding that 2011 is the final year of the earn-out. Bets against Chinese names have grown recently, with average short interest in more than 100 Chinese companies traded on U.S. exchanges rising to 5.83 percent on June 28 from less than 4 percent at the end of 2010, according to data provided by Data Explorers. AutoChina has seen a huge surge in short interest. On June 17, more than 85 percent of shares were available to be borrowed out on loan, according to Data Explorers, compared with 57.6 percent on May 23 and less than 5 percent in early March. The stock is not the only Chinese company listed in the United States to delay filing its annual report recently. China Cablecom Holdings Ltd on Thursday filed with the SEC saying its form 20-F couldn't be filed within the prescribed time. Shares of AutoChina closed at $29.19 on Thursday on Nasdaq. (Reporting by Fareha Khan in Bangalore and Ryan Vlastelica in New York; Editing by Joyjeet Das and Prem Udayabhanu) reuters.com