Posted on 04/20/2002 8:58:47 AM PDT by Donald Stone
WASHINGTON -(Dow Jones)- Pinnacle Holdings Inc.'s (BIGT) auditor Ernst & Young LLP (X.EYG) said the company's troubled financial condition raises substantial doubt about its ability to continue as a going concern.
In Pinnacle's annual report filed late Tuesday with the Securities and Exchange Commission, the auditor cited the company's recurring operating losses, working capital deficiency, and its out of compliance with certain loan agreement covenants.
As reported, Pinnacle expects to file for Chapter 11 bankruptcy protection as its attempts to complete a reorganization. The company isn't in compliance with covenants under its senior credit line and, on March 15 , stopped paying interest on all of its 5.5% convertible notes due 2007. Earlier Tuesday, Pinnacle said it received an extension until May 10 on the forbearance agreement with the credit line lenders....
Wednesday April 17, 2:09 pm Eastern Time
Pinnacle Holdings Risks Losing REIT Status Due To Tax Errors
WASHINGTON -(Dow Jones)- Pinnacle Holdings Inc. (BIGT) said failures to report timely tax-election filings with the Internal Revenue Services could cause it to lose its status as a real estate investment trust and to owe the IRS about $ 30 million.
According to the company's annual report filed Tuesday with the Securities and Exchange Commission, Pinnacle has acted to remedy the situation and anticipates favorable outcomes from its requests made with the IRS.
In January, Pinnacle became aware that four U.K. entities in which it has owned a direct or indirect equity interest since 2000 each failed to file a timely election with the IRS to be treated for U.S. tax purposes as a pass- through entity rather than as a corporation....
If you were an investor in Pinnacle you can personally thank the Florida attoreny General, Robert Butterworth and James T. Moore, head of the Florida Dept. of Law Enforcement for this little securities fraud scam.
The close friend of Butterworth, Maryland Attorney General, Joseph Curran Jr. was instrumental in having an approx. $8.3 million payment by Pinnacle made to his close personal friend and political crony Mark C. Sapperstein, as part of Pinnacle's $325 million IPO.
Butterworth was holding fundraisers for the Clinton's at his personal residence in Ft. Lauderdale and also allegedly using the Florida Attorney General's Office in Ft. Lauderdale for Democratic fund raisers !!!!!
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