Are you sure "Daddy Boone" can help? I heard he's no longer a billionaire after losing "a few million" in wind energy projects and giving away another billion in charities over time. At 85 years old and only $950 million left, he might want to keep it all for his retirement fund.
They haven't been in compliance with the covenants for a long time and have gotten a waiver every quarter. Then they finally get back in compliance as of June 30th and the bank is hassling them now? The note isn't even due until 2015. This will get worked out, but not sure why they made a big deal out of this. The note is $6m and the collateral backing it is worth $35m. Bank is just trying to squeeze them for more money..
"Astrotech Corporation (the “Company”) could not, without unreasonable effort and expense, file its Annual Report on Form 10-K for the fiscal year ended June 30, 2013 (the “Annual Report”), within the prescribed time period. On June 30, 2013, the Company was in compliance with all of the covenants in its Loan Agreement, dated as of October 21, 2010, between the Company, Astrotech Space Operations, Inc. and Astrotech Florida Holdings, Inc., as Borrowers, and American Bank, N.A., as the Lender (the “Loan Agreement”). The Company is required to provide a forward looking forecast to the lender and it is uncertain whether the Company will be able to remain in compliance with the covenants in its Loan Agreement. Management is diligently working with the lender to obtain a waiver; however the Company cannot assure that it will be successful. Any non-compliance with the covenants in the Loan Agreement would place the Company’s debt in technical default and require a reclassification of the debt from long-term to short term at June 30, 2013; therefore causing the Company’s short term liabilities to be greater than its short term assets".