I think all the covenants are captured in the forebearance agreement that ends June 18th.
DMND has too much debt for its cash flow. It must do something to get things back in order.
The events of the last few years have shown that a nut cooperative is not compatible with snack brands. DMND should sell its snack brands and revert to a cooperative. Retire all the debt and get out of the public eye. If this scenario were to occur, the stock price would double from this point.
In chemistry terms, the forces seeking to blow the molecule (DMND) apart are higher than the forces keeping it together (Mendes, who is out).
Talks may or may not be underway with PE. Serious offers will get get a chance to review the restated and current financials.
Per the extension agreement the LENDERS want to see less than negative 22.5 million earnings for 2nd Q and less than 13 million negative for 3rd Q 2012. The date for the Q2 number has passed and the extension is still in place.
Have the Lenders already seen Q1,Q2 and also the restatement of the previous 2 years?
While not compatible, the good thing is at least for Diamond is that they have grown these retail brands significantly and they have more value then when they bought them, so they will be sold for a sharp premium, hence the 'double share price' that you are suggesting (which I agree with).