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Diamond Foods suspends dividends

Diamond Foods suspends dividends

March 22nd, 2012 in News

SAN FRANCISCO (AP) - Diamond Foods Inc. is suspending its dividend payments to stockholders under a new credit agreement.

The snack maker announced in February that it was replacing its CEO and chief financial officer after an internal investigation found the company improperly accounted for payments to walnut growers. Diamond has to restate two years of financial results as well.

On Wednesday, Diamond said it has amended its agreement with lenders to give the company access to funds through June 18. Meanwhile, Diamond will make scheduled loan payments and explore ways to strengthen its balance sheet and it must suspend dividend payments under the new agreement.

Diamond last paid a dividend, of 5 cents per share, in August.

The San Francisco-based company makes foods such as Emerald nuts and Pop Secret popcorn.