Penn Traffic to File Financial Results 2007-07-09

ELLIOT ZWIEBACH

SYRACUSE, N.Y. — Penn Traffic Co. here said last week it expects to file year-end financial results with the Securities and Exchange Commission at the end of the month.

It will mark the first public release of full-year audited financial results since 2002. The company did release unaudited results in October of last year for the nine months from its emergence from Chapter 11 in April 2005 through Jan. 28, 2006, the end of its fiscal year; and from Jan. 29 through Sept. 23, 2006, the first 39 weeks of the last fiscal year.

The company said the upcoming filing follows a waiver of certain provisions of its credit facility agreements with working capital credit facility lenders, which set a deadline of tomorrow for delivering audited financials. Penn Traffic said last week it was able to deliver those results ahead of schedule, on July 2.

“We have gained considerable ground in recent months in implementing our strategic plan to re-establish Penn Traffic as an industry leader,” said Robert Panasuk, president and chief executive officer of the 106-store chain. Penn Traffic said its ability to file financial results on a quarterly basis has been complicated by ongoing investigations by the SEC and the Attorney General's office, as well as by an internal audit, concerning improper accounting practices going back to 2003.

Penn Traffic said in June 2006 the internal audit determined the company had engaged in improper practices related to promotional allowances.