PHH to Delay 1Q Financials

PHH Corp. has said it expects to miss its deadline to file first quarter 2006 financials and its extended deadline to file its annual report for 2005 because an audit of certain financial statements "was and is ongoing."The company said in a Securities and Exchange Commission filing that it could not provide an estimate of its expected net loss or income for 2006 compared to its net loss for the first quarter of 2005, "which was primarily the result of charges associated with the company's spin-off from Cendant [Corp.] on [Feb.] 1, 2005." PHH added that as it continues the process of evaluating its financial statements "accounting issues may be identified which, individually or in the aggregate, may result in material impairments to assets and/or material adjustments to or restatements of our financial statements for prior periods or prior fiscal years." But the company said its continues to believe that it has "adequate liquidity" to fund its "operating cash needs." PHH added that it has obtained number of waivers and continues "to seek additional waivers to provide audited financial statements of our subsidiaries, and reports relying upon such financial statements to certain regulators, investors in mortgage loans, and other third parties in order to satisfy federal and state insurance and mortgage regulations and certain contractual requirements."