Examiner

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Examiner's Report Finds That Ameriserve Knew of Financial Trouble Before Bond Offering

The Wall Street Journal reported on June 3, 2000 that on Friday, June 30, 2000, Deloitte Consulting LP, an examiner appointed by the United States Bankruptcy Court in the Ameriserve bankruptcy case, filed a report with the Court that stated:

"The examiner has found substantial instances of mismanagement during the period preceding the Chapter 11 filing," the report said, although it found the company's court-appointed new management, which took over after the filing, "to be operating effectively."

The report also reportedly states that:

Financial statements "classified substantial operating expenses ... as restructuring charges," the report says, which "masked the company's serious financial underperformance and delayed recognition by all parties of the severity of the problems faced by the company."