Gafisa Responds to SEC Subpoena for Documents; Shares Plunge
Gafisa SA (GFSA3), the Brazilian homebuilder that said it breached bond covenants in April, sent the U.S. Securities and Exchange Commission documents after receiving a subpoena from the regulator. The shares fell the most in more than a week.
Gafisa filed its 2010 and 2011 annual reports with the U.S., and posted the documents on its website, the company said today in a Brazilian regulatory filing. Regulators from the SEC’s division of enforcement asked the Sao Paulo-based homebuilder on June 14 to deliver all documents it used to prepare its financial statements as far back as Jan. 1, 2010, according to a U.S. regulatory filing earlier today.
“It is not clear what action, if any, the SEC intends to take with respect to the information it gathers,” Gafisa said in the filing. “The SEC subpoena does not specify any charges.”
The homebuilder failed to satisfy some of the clauses of its 2018 real-denominated floating-rate bond as its net worth fell to 2.75 billion reais ($1.35 billion) in the fourth quarter from 3.63 billion reais the previous year, according to an April 10 filing.
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