The law firm of Wohl & Fruchter LLP is investigating possible violations of federal securities laws by officers and directors of KBR, Inc. (KBR) (NYSE:KBR).
On May 5, 2014, KBR announced that its financial statements for the year ended December 31, 2013, will need to be restated, and should no longer be relied upon due to errors with respect to, among other things, the reversal of previously recognized pre-tax profits and the recognition of pre-tax estimated losses on certain Canadian pipe fabrication and module assembly contracts.
As a result of the foregoing, certificates furnished by KBR to the bank syndicate that provided a $1 billion, five-year unsecured revolving credit in December 2011 were incorrect, which constitutes an event of default under the credit agreement. KBR further stated that since the certificates provided to the banks under the credit agreement are no longer valid, without further agreement from the bank syndicate, KBR is prohibited from requesting the issuance of any new letters of credit or loan advances under its committed and uncommitted lines of credit, which could materially impact its business operations and liquidity. Further, under certain circumstances, KBR may also be required to provide cash collateral to secure outstanding letters of credit or surety bond positions.
Upon the above news, KBR has dropped nearly 6% in trading on May 5, 2014.Persons with relevant information, and KBR shareholders with questions about this investigation, are invited to contact the attorney below, or our Firm by calling 866.833.6245. Additional information is available on our website at: http://www.wohlfruchter.com/cases/kbr. About Wohl & Fruchter Wohl & Fruchter LLP represents plaintiffs in litigation arising from fraud and other fiduciary breaches by corporate managers, as well as other complex litigation matters. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or contact one of our partners. This release may be deemed to constitute attorney advertising.