Friday, Oct. 1, 1999 | 10:59 a.m.
International Thoroughbred Breeders Inc., owner of the shuttered El Rancho hotel-casino on the Strip, disclosed Thursday that its outside auditing firm has resigned.
As a result, ITB said, it can't meet a Securities & Exchange Commission deadline for filing its annual report to the federal agency. ITB also said it can't "make a reasonable estimate" of its financial results for the past year.
The disclosures were contained in separate reports filed with the SEC.
One filing said BDO Seidman LLP of Philadelphia told ITB on Tuesday it had resigned as ITB's principal independent accounting firm, ending its two-year relationship with the New Jersey-based company.
ITB said it had no disagreements with its former auditors "on accounting principles or practices, financial statement disclosure or auditing scope or procedure which ... if not resolved" Seidman would have noted in its opinion on ITB's last two annual reports.
Independent auditors who disagree with a company's accounting procedures may issued a "qualified" opinion on an annual report that could raise concerns among investors.
One of the SEC filings contained a letter from Seidman saying, "We agree with the statements made (by ITB) insofar as they relate to our firm." Seidman didn't disclose why it resigned as ITB's auditing firm.
ITB had an agreement to sell the El Rancho property to a company called Countryland USA, though the price wasn't disclosed. The sale was supposed to close by Thursday, according to SEC filings by a related company, Las Vegas Entertainment Network Inc.
LVEN spokesman Jay Goldberg wouldn't say if the transaction closed as scheduled.
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