AMF proceedings completed
The Commission des Sanctions, a unit of the French securities regulator, the Autorité des Marchés Financiers (AMF), announced today findings from its investigation into certain financial issues at Rhodia dating back to 2001-2003.
The Commission des Sanctions rejected the majority of the complaints filed by the Collège:
* The Commission rejected the complaints concerning the valuation of Chirex in 2002 and 2003 and the necessity to depreciate the related goodwill at the end of the first half of 2003. It nevertheless found that the Company’s disclosures in October 2003 were inadequate with regard to one specific issue relating to that business.
* The complaint relating to cash flow was rejected.
* The complaint regarding disclosures of environmental risks was rejected.
* The Commission found that Yves-Rene Nanot, currently Chairman of Rhodia’s Board and former Chairman of the Board’s Audit Committee, did not violate any AMF rules.
The Commission des Sanctions however upheld:
* The complaint concerning disclosure of the Group’s debt in the years 2001 to 2003.
* The complaint concerning omission of the depreciation of deferred tax assets as of June 30, 2003. Rhodia stated that this depreciation was recorded on December 31, 2003.
Based on its findings, the Commission imposed a fine on Rhodia of €750,000.
“With this decision, a page of Rhodia’s history has been turned. I want to emphasize the importance I attach to the quality and transparency of the Group’s financial communications,” stated Rhodia Chief Executive Officer, Jean-Pierre Clamadieu.
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