Tue, Sep 16, 2014, 3:48 PM EDT - U.S. Markets close in 12 mins.


% | $
Quotes you view appear here for quick access.


you are viewing a single comment's thread.

view the rest of the posts
  • peristentone peristentone Feb 9, 2012 12:02 PM Flag

    Told you so...

    Why would they declare bankruptcy in the next quarter instead of waiting for 2013Q1 for the mandatory repayment of the credit line? Without an immediate maturity due they can slump along here.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Immediate problem is their loan covenants - within two quarters, debt will exceed 3.5x EBITDA, and loans become immediately repayable.
      Beyond that, revenues and cashflow are declining so quickly that they will be burning cash. Cumulative debt only fell last quarter, from Q3/11, because they sold Lespac. EBITDA is falling by $15-20 m per quarter, and they have increased taxes and loan repayments. The suspension of preferred dividends is pretty telling of their cash situation.
      If preferreds will be worthless, then obviously so is common equity.


Trending Tickers

Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.