Diamond Foods Inc. retained Dean Bradley Osborne Partners LLC as financial adviser to strengthen its balance sheet as a planned earnings restatement threatens to violate some of its debt agreements.
The company said it is making "substantial progress" in strengthening its financial reporting and restating earnings for its past two fiscal years. The restatement's timing hasn't been set, the San Francisco-based company said Tuesday in a statement.
Hiring Dean Bradley suggests that Diamond, the seller of Emerald snack nuts and Pop Secret popcorn, may soon work to restructure its debt. The earnings restatement probably will put the company in violation of its debt covenants, and Diamond will need to negotiate new terms with its banks, said Edward Aaron, an analyst with RBC Capital Markets Corp. in Denver.
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