In statements filed with the Securities and Exchange Commission (SEC) today, Consolidated Freightways Corp. (CF) announced that neither CEO John Brincko nor CFO Stephen Sokol has had sufficient time to complete internal review of the materials covered by the SEC's certification order.
Brincko joined the company on May 28, and Sokol was appointed on July 1.
The company previously filed for an extension to August 19 to file its second-quarter 10-Q report, and by that date Messrs. Brincko and Sokol were also required to provide certification, or to indicate to SEC that they were unable to certify.
The company also said that it has not yet completed the second-quarter financial statements or the related management's discussion and analysis of financial condition and results of operations. The company said that work on the Form 10-Q for the period ending June 30 was continuing, and that it expects to file within approximately two weeks.
Vancouver, WA-based CF has been treading rough financial waters. It posted a net loss of $36.5 million on first quarter revenue of $463 million as it lost business over what it called "growing competitive pricing pressure." It lost $104.3 million in 2001, including a $37.5 million fourth-quarter loss.
Brincko, a business turnaround specialist, was brought in to replace Pat Blake as CEO. CF's board said then that its restructuring had reached the point at which it needed an experienced turnaround professional to carry the process forward to successful completion.
Brincko's turnarounds include Sun World International Inc., Barney's New York, Mossimo Inc., Globe Security and Stroud's.