Colonial BancGroup Inc. won’t be filing its quarterly financial report on time because the extent of its accounting irregularities is worse than originally thought.
Colonial originally disclosed last week a criminal probe by the U.S. Department of Justice into accounting irregularities tied to its mortgage warehouse lending division.
The Montgomery, Ala.-based institution notified the Securities and Exchange Commission yesterday that as a result of the uncertainty surrounding its financial condition, it would not able to file its quarterly report on Form 10-Q by the deadline.
“The company has been informed that the alleged accounting irregularities relate to more than one year’s audited financial statements and regulatory financial reporting, and the company’s board of directors and audit committee are making every effort to determine the impact of these alleged accounting irregularities on the company’s financial statements and regulatory financial reporting,” the filing stated. “The company intends to cooperate with the investigation.”
Colonial again reiterated its position that there is substantial doubt about its ability to continue as a going concern.
