Philip Services Corp

Last updated
Philip Services Corp.
Industry Industrials
FateBankruptcy in 1999 and 2003
Headquarters
Hamilton, Ontario
,
Key people
Robert Karey Waxman, Allen Fracassi

Philip Services Corp. was a Canadian recycler based in Hamilton, Ontario. It was accused of accounting fraud in its 1997 financial statements and filed for bankruptcy under Chapter 11 in 1999. [1]

Contents

History and Ownership

Carl Icahn led the restructuring negotiations during Philip's first bankruptcy in 1999. Icahn and partners owned 14% of the company's common equity and were the largest holders of Philips debt at the time, with approximately $200 million of debt. [2]

Accounting fraud and settlement

A class action launched on behalf of US investors against Philip's Canadian auditor Deloitte & Touche LLP was settled in 2007 with Deloitte agreeing to pay US$50.5 million. [3] As part of the settlement, the insurance company for directors and officers agreed to pay $18.25 million. The underwriters of Philip's 1997 stock offering, Merrill Lynch and Salomon Brothers, agreed to pay a total of $11 million as part of the same settlement. [4]

Criminal prosecution and regulatory actions

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References

  1. "Philip Services Gets Bankruptcy Protection". New York Times. 5 November 1999. Archived from the original on 27 May 2015. Retrieved 20 February 2023.
  2. De Santis, Solange (23 November 1998). "Philip Services Makes Deal With Icahn, A Major Creditor, to Avoid Bankruptcy". Wall Street Journal. Archived from the original on 5 October 2017. Retrieved 20 February 2023.
  3. "Deloitte to pay $50.5 mln in Philip Services suit". Reuters. 23 March 2007. Retrieved 20 February 2023.
  4. McFarland, Janet. "Deloitte to pay $50.5-million in Philip Services suit". Globe and Mail. Archived from the original on 20 February 2023. Retrieved 20 February 2023.
  5. Arnold, Steve (April 3, 2014). "Hamilton businessman's exotic lifestyle ends as he goes to jail". The Hamilton Spectator.
  6. Tedesco, Theresa (25 October 2011). "OSC opts for immunity as courts get tougher". Financial Post. Retrieved 20 February 2023.
  7. "Discipline Committee: Hoey and Woodcroft" (PDF). ICAO. Archived from the original (PDF) on 1 April 2022. Retrieved 20 February 2023.
  8. McFarland, Janet (3 March 2006). "Philip heads punished". The Globe and Mail. Archived from the original on 20 February 2023. Retrieved 20 February 2023.