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MADRID, July 6 Spanish wireless networks
provider Gowex said on Sunday it would file for bankruptcy and
its CEO and founder Jenaro Garcia Martin had resigned having
acknowledged reporting false accounts for at least the last four
The move came just hours after the company said it had hired
PricewaterhouseCoopers to carry out a forensic audit of its
accounts in a response to a report from a firm called Gotham
City Research that had questioned its revenue reporting.
Trading in Gowex shares was suspended on Thursday after they
dropped by about 60 percent in two days, wiping around 870
million euros ($1.2 billion) off the company's stock market
value, in the wake of the Gotham report.
"Mr Garcia Martin, Chief Executive Officer and Chairman, has
told several board members that the accounts of the company, for
at least the last four years, were unfaithful and that he was
responsible for this misrepresentation. The board ... has
accepted his resignation," Gowex said in a statement published
on Spain's MAB stock exchange.
Garcia Martin could not immediately be reached for comment.
A brief posting on his Twitter account on Sunday read: "I
apologise to all. I am heartily sorry."
Gowex said in its statement that in anticipation it would
likely not be able to meet debt repayments the board had agreed
to file for bankruptcy and was looking at additional measures to
protect the company's interests.
It was not immediately clear whether Gowex would still
present by Monday an action plan in relation to the Gotham
report as announced this week. Spokespeople for Gowex did not
immediately answer Reuters' requests for comment.
($1 = 0.7331 Euros)
(Reporting by Julien Toyer; Editing by Mark Potter)