Texas Petrochemicals announces internal investigation

Source: Energy Digital

Date :13/09/2007 10:44:59

Texas Petrochemicals has commenced an internal investigation into certain payments from accounts of the company which appear to have been improperly authorized.

With the approval of the Audit Committee of its Board of Directors, Texas Petrochemicals has retained an outside law firm to assist in conducting the investigation. Based on preliminary findings, it appears that an employee of the company was involved and that the activity was, within the company, limited in nature. The company terminated the employment of that individual yesterday, and he was taken into custody by federal authorities pursuant to a criminal complaint filed in a federal court in Houston by the office of the U.S. Attorney for the Southern District of Texas. The company has been working with the federal authorities on this matter and intends to continue to do so.

The payments in question were reflected as operating expenses in the company's accounting records during the periods in which they were made and, therefore, were reflected in the company's earnings and EBITDA for those periods.

The company and its outside counsel are working to complete the investigation in the most expeditious manner possible, while ensuring a thorough process. The company will delay the release of its audited financial statements for the fiscal year ended June 30, 2007 until after the internal investigation is completed. The company has informed its independent accounting firm of these circumstances and is working with them to finalize the annual audit promptly after completion of the internal investigation. The company's operations are not expected to be affected by the investigation.