Port Townsend extends waiver of financial statements deadline

New York, May 26 - PT Holdings Co., Inc., parent of Port Townsend Paper Corp., said it obtained an extension to the waiver under its revolving credit facility for delivery of audited financial statements for 2002 through 2004.

The new deadline is May 31.

The Port Townsend, Wash., paper maker said it needed the extra time to reconcile foreign currency translations incurred since the 2001 acquisition of its Canadian subsidiary, Crown Packaging Ltd.

"We believe this step can be accomplished in the next few days, and then we will be able to complete the independent audit process on the company's 2002 to 2004 financial statements," said chief financial officer Timothy P. Leybold, in a news release.

"There are a finite number of transactions that flow thru the CTA [Cumulative Translation Adjustment] account, but due to the significant strengthening of the Canadian dollar during this period, the cumulative amount of this gain is certainly material to our balance sheet.

"It is, however, an unrealized gain, and therefore does not have an impact on the company's cash or liquidity position," Leybold added.

Port Townsend previously announced that it was restating and re-auditing its 2002 and 2003 financial statements to correct its 1997 and 2001 purchase accounting, the accounting for inventory including replacement spare parts, valuation of deferred tax assets, and the treatment of other significant accounting issues.

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