Toronto, Oct. 4 - CoolBrands International Inc., maker of frozen desserts such as Eskimo Pie and Godiva ice cream, said Wednesday it does not expect to meet the deadline for filing its audited financial statements for fiscal 2006.
The news sent its stock down 30 percent, or 19 Canadian cents, to 45 Canadian cents on the Toronto Stock Exchange Wednesday afternoon, well below the peak of C$27 it reached in March 2004.
The Canadian company, which breached a covenant in its credit agreement with JPMorgan Chase last summer, cited among other things liquidity constraints from ongoing operating losses, restrictions on its line of credit and recently filed litigation requiring additional analysis by its auditor.
The company said it is reducing operating costs and cutting jobs. It is also trying to generate liquidity in the short term through salary deferrals by certain members of senior management and the selling of assets.
Last month, loss-making CoolBrands sold its Value America flavors and ingredients division to an unnamed buyer for $10 million to pay debt.
The deadline under Canadian law for filing results for CoolBrands' financial year ended Aug. 31, is Nov. 29. The company said it expects to file the reports by Jan. 29, 2007.
Over the past two years, the Markham, Ontario-based firm has suffered from slowing demand for its frozen desserts, and the loss of a lucrative licensing deal with Weight Watchers International Inc.