Report of Certified Public Accounts, Bangor Punta FY 1976
Report of Certified Public Accountants Peat, Marwick, Mitchell & Co., Provided to the Bangor Punta Corporation, Pertaining to their Fiscal Year 1976 Financial Statements. It was an Example of a Qualified Option. GGA Image ID # 15d498f89e
The Board of Directors and Shareholders of Bangor Punta Corporation:
We have examined the consolidated balance sheets of Bangor Punta Corporation and consolidated subsidiaries as of September 30, 1976 and 1975 and the related statements of income, shareholders' equity and changes in financial position for the years then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The consolidated financial statements of Piper Aircraft Corporation as of September 30, 1976 and 1975 are presented separately herein together with the report thereon of other certified public accountants, whose opinion in such report is subject to the effects of the resolution of the uncertainties referred to in note 8 to the consolidated financial statements of Piper Aircraft Corporation.
On April 11, 1975, the United States Court of Appeals found Bangor Punta Corporation and other defendants jointly and severally liable to Chris-Craft Industries, Inc. for damages and interest approximating $38,000,000 at September 30, 1976. The Supreme Court of the United States is currently reviewing this decision. As more fully described in note 2 to the consolidated financial statements of Bangor Punta, the ultimate effects of this decision on Bangor Punta's financial condition are not presently determinable: however, should Bangor Punta be required to pay all or a substantial portion of a significant judgment to Chris- Craft, it would have an adverse effect on its financial condition. If Bangor Punta's ultimate net liability were to exceed $15,000,000, then arrangements for additional bank and insurance company financing would be cancelled and a series of defaults could occur under various loan agreements which could result in all outstanding debt becoming due and payable.
Also, until the uncertainties described in note 2 are finally resolved, Bangor Punta will not be in a position to determine the effect that such matters will have on the amount at which its investment in Piper Aircraft Corporation is carried in its balance sheet.
In our opinion, based on our examination and the qualified report referred to above of other certified public accountants, and subject to the outcome of the matters referred to in the two preceding paragraphs, the aforementioned consolidated financial statements present fairly the financial position of Bangor Punta Corporation and consolidated subsidiaries at September 30, 1976 and 1975, and the results of their operations and the changes in their financial position for the years then ended, in conformity with generally accepted accounting principles which, except for the change in 1976, with which we concur, in the method of valuing inventories described in note 6, have been applied on a consistent basis.
PEAT, MARWICK, MITCHELL & CO.
White Plains Plaza White Plains, N.Y.
December 7, 1976