Things aren't looking any better for PVC maker Borden Chemicals and Plastics LP.
The troubled firm, which filed for bankruptcy in April, revealed Aug. 1 that ``possible inaccuracies'' in previous financial statements could have a negative impact of between $10 million and $20 million on financial data dating back to early 2000.
BCP is delaying the release of its second-quarter financial report and its operating report, with a bankruptcy court set to look into the glitch. The problem affected the reporting of accounts payable and inventory. Officials said the entries in question were related to a new internal computer network and occurred before the firm's bankruptcy filing.
The new system was installed in late 1999 and early 2000. As a result, BCP financial data from the last three quarters of 2000 and the first quarter of 2001 could be affected, spokesman Patrick Gallagher said.
Gallagher added that the firm is unsure what impact, if any, the investigation might have on BCP's profit data from that period.
In an Aug. 1 news release, Mark Schneider, president and chief executive officer, said the investigation will not affect its current debtor-in-possession credit facility. BCP received a $100 million credit facility in April from Fleet Capital Corp. and other lenders, according to Security and Exchange Commission filings.
Columbus, Ohio-based BCP, which continues to seek a buyer or joint venture partner, lost almost $30 million in the first quarter of 2001, after losing $84 million in 2000 and almost $150 million in 1998-2000 combined.
BCP sold off its methanol assets last year to focus on PVC as its core business, but the move hasn't paid off because of high energy costs and lower demand and pricing for PVC. The company also is the least integrated of North America's five major PVC makers, leaving it more vulnerable to pricing pressure from PVC feedstocks.
BCP's stock was delisted by the New York Stock Exchange shortly after its bankruptcy filing and was trading Aug. 2 for 3 cents per share in over-the-counter trading. It had sold for $3 per share as recently as September.