Ahold unearths new accounts problems
Banks extend lifeline for supermarket giant
May 26 2003
Ahold has negotiated an extension to the deadline for filing its 2002 accounts after its investigations threw up more problems in its businesses.
The Dutch supermarket giant said its ongoing internal investigations had indicated “intentional accounting irregularities,” principally in its Tops Markets US supermarket operation. The company said the irregularities amount to about $29m, which will require adjustments to its final figures.
Earlier this year Ahold uncovered an $880 million accounting black hole at its U.S. Foodservice arm, which led it to a launch an in-depth probe of all its operations, conducted by Deloitte & Touche.
Ahold said that its syndicate of banks has now agreed to extend the deadlines for the provision of audited 2002 figures for US operation Stop & Shop from May 31 to June 30 and for Ahold from June 30 to August 15. Audited figures for the core Dutch Albert Heijn operation are to be provided no later than June 2.
A $915m unsecured credit line announced in March will remain available subject to conditions including delivery of the 2002 accounts by the dates indicated.
The company said internal forensic accounting investigations at 14 of its operating and joint venture companies were substantially complete, and it expects the investigations at the remaining three to be completed within the next two weeks. A separate internal investigation at Disco in Argentina is also expected to be completed shortly.
