CBL & Associates Properties Inc. today said that the Securities and Exchange Commission is conducting an investigation of the company and that the Chattanooga-based developer has launched an internal probe.
The company said in a statement that, as a result of its efforts, officials have learned in a discussion with the SEC that it is conducting an investigation limited to four specific non-recourse secured loans originated in 2011 and 2012.
“Specifically, the purpose of this review is to ensure the information provided to lenders regarding lease status reports, revenues and expected revenues, did not materially vary from the company’s financial statements,” the statement said.
It said the agency “welcomed our proactive outreach, as well as our commitment to commission an independent review of our procedures with respect to those loans.”
CBL said that Ernst & Young has been engaged to conduct “a swift and thorough investigation. The findings from that independent investigation will be provided to the SEC upon completion. We are confident that this will bring a positive resolution to this matter.”
“As we’ve stated previously, at all times, our company operates with the utmost integrity and holds itself to the highest ethical standards. We have stringent policies and procedures in place to ensure all of our accounting and financial processes and reporting comply with applicable laws, rules and regulations,” the statement said.
Late last month, The Wall Street Journal reported on the investigation, citing unnamed sources.