Livent Warns of More Write-Downs

Livent Inc. said it may have to restate financial results farther back than it thought in connection with accounting problems that the live-theater company disclosed last week. Toronto-based Livent also warned that it may have significant noncash asset write-downs, some of them unrelated to the accounting irregularities, and that the restatements will probably significantly reduce shareholder equity.

On Aug. 10, Livent said it expected to restate results back to 1996 and suspended founders Garth Drabinsky and Myron Gottlieb. The company said it expects the problems to affect neither current operations nor cash flow. New managers under controlling shareholder and former Hollywood power broker Michael Ovitz continue to investigate. The firm now expects to report second-quarter results and issue any restatements in late October.