Westmoreland filed it's 1Q2010 10Q on May 10. There was not a press release this time. The net loss was only $0.30/sh this quarter. The following note is on page 8:
The Company has suffered recurring losses from operations, has violated a debt covenant, has a working capital deficit, and has a net capital deficiency. These factors raise substantial doubt about the Company's ability to continue as a going concern. The accompanying consolidated financial statements are prepared on a going concern basis and do not include any adjustments that might result from uncertainty about the Company's ability to continue as a going concern.
WML did not comply with its original leverage covenant requirements as of March 31, 2010; however, WML obtained a waiver for its anticipated March 31, 2010 violation during 2009. Pursuant to the terms of the waiver, WML had to meet certain conditions, including a revised leverage covenant. WML met the March 31, 2010 waiver covenant requirements and has classified WML's debt as long term. WRI was not in compliance with the amended net worth requirement contained in its Business Loan Agreement at April 30, 2010 and does not expect to meet this requirement for at least the next twelve months. The Company has therefore classified WRI's $11.4 million term debt as a current liability. WRI's non-compliance with this loan covenant triggers a cross default on the Company's convertible notes and, as a result, the Company has classified $11.7 million of its convertible note debt as a current liability. See Note 5 for additional information on covenant non-compliance.