Monday, August 15, 2016

Northpark Mall owners: Our independent investigation shows we did nothing wrong

(From CBL & Associates)

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.”

(CBL & Associates owns Northpark Mall in Joplin.)

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