Capital Crossing Preferred Corporation Receives Audit Report With Going Concern Explanation
NEW YORK, April 22 /PRNewswire-FirstCall/ -- Capital Crossing Preferred Corporation (NASDAQ: CCPCN) (the "Company") announced today that the audit report of its independent registered public accounting firm, Ernst & Young, included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2008 (the "Form 10-K"), while expressing an unqualified opinion regarding the Company's audited financial statements, contained a note from Ernst & Young that identified matters which raise substantial doubt about the Company's ability to continue as a going concern.
This announcement is being made in compliance with Nasdaq Marketplace Rule 5250(b)(2), which requires separate disclosure of an audit opinion that contains a going concern qualification. This announcement does not represent any changes or amendment to the Company's 2008 financial statements or to the Form 10-K which was filed with the Securities and Exchange Commission on April 15, 2009.
As disclosed in the Form 10-K, at December 31, 2008, the Company had total assets of approximately $96 million, including cash and cash equivalents of approximately $43.8 million, and total liabilities of less than approximately $0.9 million. However, as disclosed in the Form 10-K, on September 15, 2008, Lehman Brothers Holdings Inc. ("Lehman Brothers"), parent company of Lehman Brothers Bank, FSB ("Lehman Bank") and the ultimate parent company of the Company, filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code. Further, Lehman Bank, the owner of all of the common stock of the Company, is subject to a Cease and Desist Order, dated January 26, 2009, and a Prompt Corrective Action Directive, dated February 4, 2009, issued by the Office of Thrift Supervision (the "OTS"), requiring Lehman Bank, among other matters, to submit a capital restoration plan and a liquidity management plan, and imposing restrictions on certain activities of Lehman Bank and the Company. Ernst & Young therefore noted in its audit report included in the From 10-K that the bankruptcy of Lehman Brothers and the ability of the OTS to regulate and restrict the business and operations of the Company, in light of the Cease and Desist Order and the Prompt Corrective Action Directive, raise substantial doubt about the Company's ability to continue as a going concern.
About Capital Crossing Preferred Corporation.
Capital Crossing Preferred Corporation acquires and holds real estate assets consisting primarily of mortgage assets secured by commercial and multi-family properties. Lehman Bank is the sole holder of the Company's common stock. The Company's 8.50% Non-Cumulative Exchangeable Preferred Stock, Series D (the "Series D Preferred Stock"), is listed on The NASDAQ Stock Market under the symbol "CCPCN". |
Thread abonnieren
