NEW YORK, March 19, 2015 /PRNewswire/ -- Pomerantz LLP is
investigating claims on behalf of investors of Willbros Group Inc.
("Willbros" or the "Company") (NYSE: WG). Such investors are
advised to contact Robert S.
Willoughby at rswilloughby@pomlaw.com or 888-476-6529, ext.
237.
The investigation concerns whether Willbros and certain of its
officers and/or directors have violated Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934.
On March 17, 2014, Willbros
announced that "it is filing a Form 12b-25 Notification of Late
Filing with the U.S. Securities and Exchange Commission (SEC) with
regard to its Annual Report on Form 10-K for the year ended
December 31, 2014. The Company has
determined that it is unable to file its Form 10-K for the year
ended December 31, 2014 with the
prescribed time period without unreasonable efforts or expense for
the following reasons.
The Company does not expect to be in compliance with its Maximum
Leverage Ratio and Minimum Interest Coverage Ratio for the period
from March 31, 2015 through
March 31, 2016. As a result,
the Company is in discussions with its lenders regarding amendments
and waivers to its credit agreements. Without a definitive waiver
or amendment, all indebtedness under its credit agreements would
become due in the next twelve months. If the debt under the
Company's credit agreements becomes accelerated and the lenders
demand repayment, it is expected that the Company will not have
sufficient forecasted liquidity to retire its existing debt
obligations, which raises substantial doubt on the Company's
ability to continue as a going concern. The Company is engaged in
discussions with its lenders with regard to any necessary waivers
and amendments but gives no assurance that any such waivers and
amendments will be finalized. As a result, the Company is
unable to accurately evaluate and disclose the impact of
significant risks and uncertainties associated with the Company,
including its potential non-compliance with certain financial
covenants. The Company has determined that a material
weakness existed at December 31,
2014, over the assessment of significant risks and
uncertainties associated with its ability to comply with financial
covenants contained in its credit agreements, and over the
assessment of its ability to meet its liquidity and capital
resource needs for a reasonable period of time, primarily as a
result of not reflecting certain business conditions timely and
adequately in its forecast process."
On this news, shares of Willbros fell $2.79 per share to $2.69, or more than 50%, in intra-day trading on
March 18, 2015.
The Pomerantz Firm, with offices in New York, Chicago, San
Diego and Florida, is
acknowledged as one of the premier firms in the areas of corporate,
securities, and antitrust class litigation. Founded by the late
Abraham L. Pomerantz, known as the
dean of the class action bar, the Pomerantz Firm pioneered the
field of securities class actions. Today, more than 70 years later,
the Pomerantz Firm continues in the tradition he established,
fighting for the rights of the victims of securities fraud,
breaches of fiduciary duty, and corporate misconduct. The Firm has
recovered numerous multimillion-dollar damages awards on behalf of
class members. See www.pomerantzlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
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SOURCE Pomerantz LLP