Diamond Foods to miss restatement deadline
(Reuters) - Diamond Foods Inc (DMND.O) said it will miss Monday's deadline to file restated financial statements, which could lead to a delisting from Nasdaq, sending its shares down 5 percent.
Diamond, the maker of Emerald nuts, Pop Secret popcorn and Kettle potato chips, said it is in the process of preparing a restatement of its financial statements for fiscal 2010 and 2011 after an investigation uncovered improper accounting.
The accounting scandal, which revolved around the timing of payments to walnut farmers, claimed the jobs of Diamond's CEO and CFO and scuttled the company's plan to acquire Pringles potato chips from Procter & Gamble (PG.N).
Kellogg (K.N) bought Pringles instead, making it the largest snack food company behind PepsiCo Inc (PEP.N).
Diamond had until Monday to file reports for the last three quarters, but said it will be unable to file them on time.
The company also said it will be unable to hold its annual meeting by a July 31 deadline, which would also make it subject to delisting by Nasdaq.
Diamond plans to request a hearing to appeal Nasdaq's delisting determination and seek an extension to hold its annual meeting.
The company said it has made "substantial progress" completing a restatement and will file its statements as soon as it can.
Last month, Diamond said Oaktree Capital Management would invest $225 million in the company, allowing it to shore up its balance sheet, meet funding needs and support the growth of its business.
Diamond shares fell 5 percent, or $1.02, to $19.12 on Nasdaq in morning trading.
(Reporting By Martinne Geller in New York; editing by Jeffrey Benkoe and Maureen Bavdek)
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