May 15, 2009
Forest City warns SEC of potential new delays, new costs, and failure to meet (tax-exempt bond?) deadlines
Atlantic Yards Report
The specter of the Securities and Exchange Commission makes Forest City much more circumspect in its regulatory filings than it is in its press releases, and the prospectus issued this week in conjunction with its announced sale of new stock introduces heretofore unseen language cautioning about downside risks to the company's Atlantic Yards project.
On April 2 I pointed out that Forest City Enterprises, in its Form 10-K filed with the Securities and Exchange Corporation (SEC), acknowledged additional potential for increased costs and delays, for the first time warning of potential "inability to retain the current land acquisition financing" and "loss of arena sponsorships and related revenues." Forest City also warns about the possibility of failing to meet required equity contributions.
A new Prospectus filed Wednesday in association with the issuance of 40 million new shares adds several new warnings. I've bolded the new or changed text.
Posted by eric at May 15, 2009 3:11 PM