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  • sgmiller196607 sgmiller196607 Jul 2, 2013 4:00 PM Flag


    I have been following this of late, and it looks to me like the main problem or topic is the Forbearance agreement. It expired on the 30th and "could be" extended to July 10th I believe. It looks like mr. market is awaiting the outcome with the only trading being done by small investors and day traders. If anyone has news on this that I am unaware of please share. The statements are also an issue. For example they have readjusted their adjustment which is never good. Also, lots of mixed messages. Reading Moody's, you would think bankruptcy in right around the corner, while the company is planning growth in the 2nd half. I understand management can be overly "optimistic" at times, but that is quite a difference.

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    • Sgmiller,

      Well, to my mind the Moody piece is almost programmatic, along the lines of "as we can't get the numbers, we can't assess," which I think is quite fair.

      The commitment letter is great news, I think, in that it directly addresses the requirement by DirecTV as laid out in the Termination Notice Withdrawal Agreement:

      "The current debt of the Company must be refinanced, by July 31, 2013, to provide liquidity (based on the Company’s and its subsidiaries’ unrestricted cash and cash equivalents, marketable securities and availability under credit facilities) of at least $10 million at the closing of the refinancing; the Company must provide projections, based on reasonable assumptions, indicating that it will maintain such liquidity through the end of 2014 and that the refinancing will provide DirectSat with adequate liquidity to perform its obligations under the HSP agreement and satisfy its other obligations as they become due"

      So, once the refinancing of the new credit facility closes (and, of course, the restatement is published,) it looks to me like DirecTV should be able to commit to the business again, and, so, Unitek should be back on track.