Washington, Aug 29: Penthouse International said on Wednesday the status of an inquiry by the Securities and Exchange Commission into the adult magazine publisher’s previous financial statements has turned formal. The publisher said in a regulatory filing that its attorney received a formal order of investigation from the SEC on July 23, more than one month after it was notified that the regulator had begun an inquiry. The inquiry pertains to its full-year ’02 and first-quarter ’03 results, as well as its accounting treatment of a web site management agreement and changes in auditing or accounting services during ’02 and ’03.

Penthouse said it cannot predict how long the investigation will last or determine its outcome. “The registrant is co-operating fully and intends to continue to do so,” the company said in the regulatory filing. It first disclosed the inquiry in June and urged investors not to rely on the quarterly report which was filed on May 23, because some factual errors relating to transactions with subsidiaries had been identified.
Earlier this month, General Media, subsidiary of Penthouse and the publisher of the racy magazine, said it had filed for Chapter 11 bankruptcy protection so it could restructure its operations and debt. Shares of New York-based Penthouse, which is overseen by Robert Guccione, closed down 13 cents at 60 cents on the Over-The-Counter Bulletin Board. Bureau report