Kehoe Law Firm, P.C. is conducting a securities investigation on behalf of Aegean Marine Petroleum Network Inc. (NYSE: ANW) stockholders concerning whether Aegean Marine Petroleum Network and certain of its officers and directors may have engaged in securities fraud or other unlawful business practices.
ANW-Related Transactions without Economic Substance; $200 Million of Accounts Receivable to Be Written Off
During aftermarket hours on June 4, 2018, Aegean Marine Petroleum Network revealed that approximately $200 million of accounts receivable as of December 31, 2017 will need to be written off. According to ANW:
Based on the preliminary findings of the review, the Audit Committee believes that approximately $200 million of accounts receivable owed to [ANW] at December 31, 2017 will need to be written off. These amounts are currently due from four counterparties that were reflected in the Company’s financial statements as of December 31, 2017. There was approximately $172 million as of December 31, 2016 and $85 million as of December 31, 2015 due from these four counterparties. The transactions that gave rise to the accounts receivable (“the Transactions”) may have been, in full or in part, without economic substance and improperly accounted for in contravention of [ANW’s] normal policies and procedures. (Emphasis added)
Further, ANW reported:
The Audit Committee is continuing its review and investigation of the Transactions and other matters, with the assistance of independent counsel and forensic accounting advisors, and expects to recommend to [ANW] that it pursue claims against individuals and entities involved in the Transactions. . . . A number of individuals employed by [ANW] across multiple functions who are believed to have been involved in the Transactions have been terminated or placed on administrative leave pending the outcome of the investigation. [ANW] has reported its preliminary findings to the SEC and the Department of Justice and intends to cooperate with any resulting investigations. [ANW] does not intend to provide an update on this process until the review is completed. (Emphasis added)
On this news, in after-hours trading on June 4, 2018, ANW’s stock price dropped more than 57%, from a close of $2.85 to as low as $1.20 per share.
Aegean Marine Petroleum Investors and Shareholders
If you purchased or otherwise acquired ANW stock and have questions or concerns about the securities investigation or your potential legal rights, please contact John A. Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], complete the form above on the right or e-mail [email protected].