Toreador Resources 8-K 2006
Documents found in this filing:
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
(Exact Name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction of Incorporation)
(Registrants Telephone Number, Including Area Code)
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
On August 3, 2006, Toreador Resources Corporation (the Company) concluded that its previously issued unaudited consolidated financial statements as of and for the three months ended March 31, 2006 should be restated (i) to reverse a non-cash loss contingency of $1.5 million on an insurance receivable that was recorded as of March 31, 2006 and (ii) to capitalize interest previously expensed of approximately $631,000 associated with the development program in offshore Turkey for the three months ended March 31, 2006.
In addition, during the quarter ended June 30, 2006, the Company analyzed the loss contingency related to its outstanding insurance claim. After further review of the specific facts and circumstances related to the loss contingency reserve recorded for the quarter ended March 31, 2006 and discussion with the Companys independent accountants, we concluded that the loss contingency of $1.5 million included in the allowance for doubtful accounts should not have been recorded.
Also during the quarterly period ended March 31, 2006, the Company did not capitalize interest associated with its development operations in Turkey, as required under generally accepted accounting principles.
The effect of these changes is reflected below:
Accordingly, on August 4, 2006, the Chairman of the Audit Committee of the Board of Directors, was advised of the above information and after a discussion with the Chief Financial Officer and Chief Accounting Officer, concluded with the Chief Financial Officer and Chief Accounting Officer that the Companys consolidated financial statements as of and for the three months ended March 31, 2006 should no longer be relied upon as a result of the Companys determination to restate its consolidated financial results and position, as discussed above. These financial statements will be restated and filed with the Securities and Exchange Commission pursuant to a Form 10-Q/A as of and for the three months ended March 31, 2006.
* * * * *
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
TOREADOR RESOURCES CORPORATION