Herbalife Ltd. (NYSE:HLF) has issued a press release stating that the company does not expect to be delisted despite KPMG quitting as the firm’s auditor. Additionally, the company believes that the removal of the auditor will not require the company to default.
Many believe that the uncertainty regarding the audit outcome is a risk in that the company will have reduced financial flexibility during the period when it does not have audited financial statements.
Seth Klarman Tells His Investors: Central Banks Are Treating Investors Like “Foolish Children”
"Surreal doesn't even begin to describe this moment," Seth Klarman noted in his second-quarter letter to the Baupost Group investors. Commenting on the market developments over the past six months, the value investor stated that events, which would typically occur over an extended time frame, had been compressed into just a few months. He noted Read More
Herbalife Ltd. (NYSE:HLF) could be lucky to file their 2013 10-K on time. Given that there is no allegation of fraud or questionable accounting, some doubt the re-audit would be forensic in nature, but if it is, it will take more than a year.
Herbalife is a global network marketing company that sells weight management, nutritional supplement and personal-care products in more than 75 countries through a network of 2.1 million independent distributors. Approximately 80% of the company’s sales take place outside of the U.S. The company operates in four primary product divisions: Weight Management, Targeted Nutrition, Energy & Fitness and Personal Care. The company was founded in 1980 and employs approximately 5,100 full-time employees.
The press release can be found below:
Herbalife Response to Media Inquiries
LOS ANGELES–(BUSINESS WIRE)– Herbalife (NYSE: HLF) today issued the following statement in response to media inquiries:
We believe we are currently in compliance with New York Stock Exchange (NYSE) listing requirements and we do not anticipate that the NYSE will initiate any type of proceeding to delist the company. Earlier today, the company proactively reached out to NYSE officials regarding its detailed plan to replace KPMG and will keep the exchange fully apprised of those efforts. In addition, the company has confirmed that KPMG’s resignation as the company’s auditor and KPMG’s withdrawal of its prior audit opinions will not result in a default under Herbalife’s existing credit facilities.