I do not understand if you have so many issues why would you want to buy TV one and increase debt.Let us see what happens to common in restructuring
'That is just one of the new conditions laid on the D.C.-based station owner and syndicator as part of its extended period of “forbearance”, while it works out its default with lenders. Radio One must engage a re-structuring advisor by tomorrow and must have a meeting with the lending group by Friday, August 27. The forbearance period has now been extended out to September 10. Radio One must also deliver updated 13-week cash flow projections. In addition, the company reveals in an SEC filing that the agent for its lenders (led by Wells Fargo) delivered a “payment blockage notice” that affected the August 15 interest payment to holders of its notes due 2013. Radio One observes that even with all these activities, the lenders still “have not accelerated the indebtedness” and it continues to “actively pursue various financing alternatives” with both lenders and the holders of its notes due 2011 and 2013'
Someone might buy their assets, could be worth a little, but I've said for sometime that this company was in serious danger to go bankrupt even when this was $5 plus.
You have to separate the noise from common due diligence, and this company is in big trouble.
Radio One's mgmt. has been shareholder friendly .They have bought back half the shares in last couple of years.This gives me confidence that the shareholders are not going to be totally wiped out in any restructuring.
I think there is more reward than risk at this price.May be they will abandon the TV one purchase for now.
indeed.. but the bank is acting fairly i think. they are in default since the end of june cause of the 7.25 -> 6.5 total debt ratio change in covenants, so the bank gave them a forberance agreement untill the 13.8, and then agreed to extend it to the 10.9 and expand it to another expected default (due to restatement of financials).. that's rather fair..
now there are 2 real defaults looming-
10.9 - end of forbearance agreement with wfc = default with the bank
16.9 - more than 30 days late on payment of interest to 2013 bond holders (due to interest blockage on 15.8 by wfc) = default with bond holders
this really needs to be settled fast.. this is a viable company there's no real reason for bankruptcy here but it might happen
at this point i will be happy to be dilluted by 50% for a large amount of bond debt reduction for instance, thats a win win for both equity and bonds
Humm..I hadn't thought of it that way,,,maybe you are right..BUT it was an integrated agreement meaning all parts took place or none. Well IF that piece isn't there then we have an entirely different situation. I guess that would explain why the bank is roasting them on a hot fire...because they can. Nevertheless they are still 1st priority lender with almost NOTHING at risk. The interest in TV One is worth at least $ 150 Million..that is a a very salable asset..to Comcast or someone else in the Media business.