Philip Services Corp. was a Canadian recycler based in Hamilton, Ontario. It was accused of accounting fraud in its 1997 financial statements and filed for bankruptcy under Chapter 11 in 1999.[1]
History and Ownership
Carl Icahn led the restructuring negotiations during Philip's first bankruptcy in 1999. Icahn and partners owned 14% of the company's common equity and were the largest holders of Philips debt at the time, with approximately $200 million of debt.[2]
Accounting fraud and settlement
A class action launched on behalf of US investors against Philip's Canadian auditor Deloitte & Touche LLP was settled in 2007 with Deloitte agreeing to pay US$50.5 million.[3]