San Diego, CA -- (SBWIRE) -- 02/15/2012 -- The Shareholders Foundation announces that an investor in shares of K-Sea Transportation Partners L.P. (formerly NYSE:KSP) filed a lawsuit in the U.S. District Court, District of New Jersey against K-Sea Transportation over alleged Violations of Federal Securities Laws in connection with certain of its Financial Statements.
Investors who purchased K-Sea Transportation Partners L.P. (formerly NYSE:KSP) securities during the period between January 30, 2009 and January 27, 2010, have certain options and there are strict and short deadlines running. Deadline: March 27, 2012. Those NYSE:KSP stockholders should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased K-Sea Transportation Partners L.P. (formerly NYSE:KSP) securities during the period between January 30, 2009 and January 27, 2010, that K-Sea Transportation and certain of its officers violated the Securities Exchange Act of 1934.
On October 28, 2009, K-Sea Transportation Partners L.P. issued a press release announcing its operating results for the first quarter fiscal 2010. K-Sea Transportation Partners L.P. disclosed that it would be unable to meet its earnings estimates and would be in violation of financial covenants under certain debt and lease agreements. K-Sea Transportation Partners L.P. said: "The Company reported an operating loss of $1.3 million, including an asset impairment charge of $5.9 million. Operating income, before asset impairment charges, was $4.6 million, a decrease of $5.3 million, or 54%, compared to the first fiscal quarter ended September 30, 2008. Earnings before interest, taxes, depreciation and amortization ("EBITDA") for the first quarter of fiscal 2010 was $18.2 million, a decrease of $4.5 million, or 20%, compared to $22.7 million in the same quarter last year. EBITDA is a non-GAAP financial measure that is reconciled to net income, the most directly comparable GAAP measure [.... ]The Company also announced that its distribution to unitholders for the first fiscal quarter will be $0.45 per unit, or $1.80 per unit annualized, compared to the previous distribution of $0.77 per unit. This distribution will be payable on November 16, 2009 to unitholders of record on November 9, 2009. At this distribution rate, the Company anticipates its distributable cash flow for fiscal 2010 will exceed 1.00 times the amount needed to cover the distributions to be paid to unitholders. The Company believes it currently is in full compliance with all provisions of its debt and lease agreements. While the Company expects to continue to pay when due all future obligations in respect of its debt and leases, the Company expects that it will not be in compliance with its financial covenants in certain of these agreements as of the end of its second or third fiscal quarter of fiscal 2010, and in anticipation of these circumstances, will be seeking to amend these covenants."
Then on January 28, 2010, K-Sea Transportation Partners disclosed that it had incurred a $1.7 million charge in connection with overpaying for its water treatment facility due to lack of lease renewal options, its vessel utilization was the lowest in a decade, and K-Sea Transportation's dividend was suspended.
K-Sea Transportation Partners units fell $4.99 or 33.5%, to close at $9.89 on January 28, 2010. Then in July 2011, Kirby Corporation acquired K-Sea Transportation Partners L.P.
Those who are purchased K-Sea Transportation Partners L.P. (NYSE:KSP) securities during the period between January 30, 2009 and January 27, 2010, have certain options and there are strict and short deadlines running. Deadline: March 27, 2012. Those NYSE:KSP stockholders should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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