The bankrupt maker of Twinkies and Wonder Bread has reportedly settled a Securities and Exchange Commission investigation into its recordkeeping and accounting.
Interstate Bakeries Corp. said that it has been ordered by the SEC’s Division of Enforcement to file 18 months of delinquent quarterly and annual reports by Dec. 31, or its stock could be delisted. The company released restated annual and quarterly reports for 2004 and 2005 in October.
In a release, the company said it could not guarantee that it would meet that deadline.
The SEC began an investigation into Interstate after the company's audit committee announced in 2004 that it was looking into how the company set aside money for future workers' compensation reserves and other reserves.
Under the proposal, which still must be approved by the SEC, Interstate Bakeries would agree to a cease-and-desist order against future violations of record-keeping and internal controls. Interstate announced the formal investigation in January 2005. Three months earlier, the company announced its bankruptcy filing, saying that it needed time to complete an operational and financial restructuring.
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