Following an internal audit of its previously issued financial statements, regional wireless provider MetroPCS Inc. reported that financial statements issues in 2002 and 2003 including all earnings releases “should not be relied upon.” MetroPCS said it will delay the issuance of financial statements for the second and third quarters of this year until after the completion of the independent investigation.
The internal investigation followed a report in late July that MetroPCS was delaying its planned initial public offering pending a review of its financial statements. That review initially led to a restatement of the carrier’s first-quarter 2004 service revenues and net income and an eventual delay in reporting its second-quarter 2004 results.
MetroPCS noted last month that its failure to report quarterly results in a timely fashion resulted in a notice of failure to comply with indenture covenants associated with its $150 million 10.75-percent senior notes due 2011. Trustees of those notes have the right to accelerate the notes at 100 percent of their value if MetroPCS fails to comply with the covenant by Nov. 8, which would force the carrier to seek alternative financing sources.
