SYRACUSE, N.Y. — Penn Traffic Co. here said yesterday it has reached a settlement with the Securities and Exchange Commission over accounting practices relating to promotional allowances by the chain from fiscal 2001 though fiscal 2003 and by its Penny Curtiss bakery subsidiary from fiscal 2000 through the first quarter of fiscal 2003. Without admitting or denying the allegations in the SEC's complaint, PennTraffic agreed to accept a permanent injunction against any future violations of federal securities laws, and also agreed to hire an independent examiner who will provide annual reports for three years to the SEC, the U.S. Attorney for the Northern District of New York and the company's board on promotional-allowance controls and financial reporting. The agreement does not involve any fines or monetary penalties. According to Daniel J. Mahoney, senior vice president and general counsel, “The company has worked hard to address a number of legacy issues so Penn Traffic's resources and attention can be fully dedicated to our customers … so [this] settlement is another important step in the right direction.”

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