The New York Times

Release Sought of Polaroid Report

August 22, 2003

The court-appointed examiner who has been investigating the accounting practices of the Polaroid Corporation has asked a bankruptcy judge to clear the way for public release of the report.

An emergency motion filed late Tuesday by the examiner, Perry M. Mandarino, asks Chief Judge Peter J. Walsh of the United States Bankruptcy Court to reject a bid by KPMG to keep ''critical'' information in his report on accounting irregularities at Polaroid confidential.

Mr. Mandarino's filing said he was ready to file his report with the court ''within the next few days.'' KPMG's documents are integral parts of that report, and the accounting firm is disputing the examiner's right to make them public.

The emergency motion asks Judge Walsh to overrule KPMG's objections, which were made in the form of a letter to the examiner's lawyers.

According to Mr. Mandarino, the long-awaited report quotes heavily from documents produced by Polaroid's former accounting advisers and incorporates some documents as exhibits. KPMG work papers are the basis for several findings and conclusions, the examiner says, and if he is not allowed to use them, his work will produce a watered-down version of the events that led to Polaroid's failure.

In a letter sent to Mr. Mandarino's lawyers last Thursday, KPMG cited confidentiality concerns over work papers it turned over to the examiner under an earlier order from the bankruptcy court and asked that some documents be kept under seal.