A Medical Device Daily
Pall (East Hills, New York) reported that it has received all waivers required to be obtained by Sept. 6 under the terms of its recently concluded amendment and waiver relating to the company’s $500 million revolving credit facility (Medical Device Daily, Aug. 21, 2007).
The additional waivers relate to previously disclosed tax and financial reporting matters that are the subject of an independent inquiry by Pall’s audit committee.
The company reported in early August that its annual and quarterly financial statements for the fiscal years 1999 through 2006 and the first three quarters of 2007 should no longer be relied upon and may need to be restated.
The company said it believes that taxes payable with respect to the intercompany payable balances could be in excess of $130 million, exclusive of interest and penalties. It also believes that it may have one or more material weaknesses in its internal control over financial reporting
The company reported the most recent amendment and waiver under its $500 million revolving credit facility in its report on Form 8-K filed with the Securities and Exchange Commission on Aug. 20. Under that amendment and waiver, the company must still obtain other necessary waivers or amendments under its remaining agreements by Oct. 31.
Separately, Pall reported that it will delay the release of its 4Q07 results previously planned for Sept. 13 The company also expects that it will delay the filing of its fiscal year 2007 Form 10-K beyond the prescribed due date of Oct. 1 and the subsequent extension to Oct. 16 that is permitted under rules of the Securities and Exchange Commission.
“We are focused on regaining our compliance with filing requirements as soon as possible and are committed to resolving any issues that may be identified by the Audit Committee’s independent inquiry,” said Eric Krasnoff, Pall CEO/chairman. “During this difficult period, the continued support of all of our principal banks is deeply appreciated.”
Pall is developing technolgy in the field of filtration, separation and purification. It is organized into two businesses: Life Sciences and Industrial.
In other financing news: ZOLL Medical (Chelmsford, Massachusetts), a manufacturer of resuscitation devices and related software, reported that A. Ernest Whiton, its CFO and VP of Administration, is entering into a 10b5-1 sales plan for the sale of up to 40,000 shares of ZOLL common stock over an approximate 12-month period.
Whiton expects to sell 10,000 shares, on average, each quarter, depending on market conditions, beginning in 1QFY08.