07:26 AM EDT, 07/22/2024 (MT Newswires) -- Chesswood Group Limited ( CHWWF ) , which lost 5.5% and nearer to 52 week lows last Friday, on Monday said it will have to prepare and file restated financial statements and management's discussion and analysis for the three months ended March 31, 2024 as a result of its prior disclosed errors in calculating its borrowing base for purposes of its senior secured revolving credit facility, and the resulting breach of the credit facility, suspension of borrowing capacity and suspension of originations by Pawnee Leasing and Rifco.

According to a statement, management and members of Chesswood's ( CHWWF ) Audit & Risk Committee are working with Chesswood's ( CHWWF ) auditors to determine the ultimate restatements to be made, but it is expected that the restatements will include: one, the write down of certain (and perhaps all) intangibles, including goodwill; and two, the write down of long lived assets and certain deferred tax assets and liabilities; and three, correcting disclosure related to compliance with, and available borrowings under, the credit facility; and four, revised going concern and controls and procedures disclosure.

Chesswood ( CHWWF ) said its management is also engaged in review of the prior year borrowing base calculations and prior year financial statements and MD&A to determine whether restatement is required.