Company Also Confirms no DOJ Investigation
CHATTANOOGA, Tenn.--(BUSINESS WIRE)--
CBL & Associates Properties, Inc. (NYSE:CBL) today issued the following
update on the status of the independent investigation into four specific
loans.
“We are pleased to report that an independent investigation conclusively
confirms what we have asserted all along: the allegations regarding our
procedures with respect to the four loans were completely false and
unwarranted. Specifically, the investigation confirmed that information
concerning leases and revenue, which was provided to lenders in
connection with the four loans, and the accounting for the leases for
properties securing the loans were accurate in all material respects.
The investigation found absolutely no wrongdoing by CBL or its employees
in connection with the loans. We believe the results of the independent
investigation represent a positive resolution to this matter and
validate the integrity and standards of our financial and accounting
practices.
“As previously stated, we learned on June 10, 2016, that the Securities
and Exchange Commission (SEC) was conducting an investigation into four
specific non-recourse loans originated in 2011 and 2012. The SEC
provided us with the opportunity to commission an independent
investigation and proffer findings to the SEC. At that time, CBL’s Board
of Directors authorized the independent directors to initiate an
investigation and retain independent counsel. The independent directors
engaged McDermott Will & Emery LLP (McDermott) as their counsel, and
McDermott retained an independent accounting firm, Ernst & Young (E&Y),
to assist in the investigation. Upon completion of the investigation,
McDermott and E&Y presented the results to the SEC. The investigation by
the independent directors is now closed.
“Additionally, through our outreach to the Department of Justice (DOJ),
we confirmed that the DOJ is not conducting an investigation of CBL.”
About CBL & Associates Properties, Inc.
Headquartered in Chattanooga, TN, CBL is one of the largest and most
active owners and developers of malls and shopping centers in the United
States. CBL owns, holds interests in or manages 145 properties,
including 89 regional malls/open-air centers. The properties are located
in 31 states and total 82.9 million square feet including 8.6 million
square feet of non-owned shopping centers managed for third parties.
Additional information can be found at cblproperties.com.
Information included herein contains "forward-looking statements"
within the meaning of the federal securities laws.Such
statements are inherently subject to risks and uncertainties, many of
which cannot be predicted with accuracy and some of which might not even
be anticipated.Future events and actual events, financial and
otherwise, may differ materially from the events and results discussed
in the forward-looking statements.The reader is directed to the
Company's various filings with the Securities and Exchange Commission,
including without limitation the Company's Annual Report on Form 10-K
and the "Management's Discussion and Analysis of Financial Condition and
Results of Operations" included therein, for a discussion of such risks
and uncertainties.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160815005312/en/
CBL & Associates Properties, Inc.
Investor Contact:
Katie
Reinsmidt, 423-490-8301
Senior Vice President - Investor Relations
and Corporate Investments katie.reinsmidt@cblproperties.com
or
Media
Contact:
Stacey Keating, 423-490-8361
Director of Public
Relations
stacey.keating@cblproperties.com
Source: CBL & Associates Properties, Inc.