"This settlement will enable our company to put this matter behind us and to continue our focus on building and sustaining our positive momentum on behalf of our shareowners," Daniel Ustian, Navistar CEO said in a release.
According to the truck maker, SEC has been provided with all the information it required and received the full cooperation of Navistar. The current agreement, which will now have to be approved by SEC, Navistar will admit "the entry of an administrative settlement regarding its pre-restatement accounting practices in specified areas" and will not pay any fines or penalties.
On the downside, for some at least, Daniel Ustian will be forced to return, in part, his 2004 bonus, the only year in the scrutinized period when a bonus was paid. Additionally, several other, unnamed personal may have to face civil penalties.
Despite it all, Navistar's senior vice president, Steven Covey emphasizes the fact that the settlement is not a recognition of guilt. Nor is it a denial, Covey says.
The settlement is only "in the best interest of our shareholders and will avoid the expense and distraction of a potential dispute with the SEC,” Covey believes.
Navistar said it implemented both new systems and trained personnel to avoid such mishaps from happening again.
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