PHH to Miss Another Deadline
Mortgage banking firm PHH (PHH) needs more time to get its financial affairs in order.
The firm, which was spun off last year by Cendant (CD), says it will miss the June 30 filing deadline for submitting financial statements for the second quarter. PHH previously missed the deadline for filing first-quarter financials and still hasn't filed its 2005 annual report.
The company says it's still reviewing "significant accounting adjustments" that were made in conjunction with the February 2005 spinoff. PHH says the delay in filing its financial statements has led it to obtain a number of waivers from its lenders.
PHH did not say what the waivers involved. But it's not uncommon for loans and corporate bonds to contain provisions that trigger an automatic default, in the event a company is delinquent in filing financial statements.The problems with PHH's financial affairs may explain why Cendant was unable to find a buyer for the mortgage business. Two years ago, as Cendant was actively shopping the mortgage firm, Countrywide Financial (CFC), Citigroup (C) and JPMorgan Chase (JPM) all passed on the deal. The inability of the real estate and travel conglomerate to unload PHH led it to opt for last year's spinoff. PHH, meanwhile, also said it has uncovered a number of "material weaknesses" in its financial reporting. The weakness were uncovered as part of the standard review that all companies must now undertake, since the passage of the Sarbanes-Oxley corporate reform law. "We intend to remediate any material weaknesses and other control deficiencies identified as promptly as possible,'' the company says. In morning trading, shares of PHH were down 20 cents to $25.86.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV