Texas Petrochemicals, Inc. has commenced an internal investigation into certain payments from accounts of the Company which appear to have been improperly authorized. The payments in question were reflected as operating expenses in the Company's accounting records during the periods in which they were made and, therefore, were reflected in the Company's earnings and EBITDA for those periods.
This investigation is a result of information uncovered by senior management in July 2007 through the Company's internal auditing efforts. With the approval of the Audit Committee of its Board of Directors, the Company has retained an outside law firm to assist in conducting the investigation.
Based on preliminary findings, it appears that an employee of the Company was involved and that the activity was, within the Company, limited in nature. The Company has terminated the employment of that individual, and he was taken into custody by federal authorities pursuant to a criminal complaint filed in a federal court in Houston by the office of the U.S. Attorney for the Southern District of Texas. The Company has been working with the federal authorities on this matter and intends to continue to do so.