DEXO was reducing debt and interest payments. The annual interest payment dropped from 226 million a year to 195 million a year. The last interest payment was 42.9 million or 171 million annualized.
Despite all the debt DXM has paid back, the interest payment always remains near the same. 88-90 million.
Why give him a raise if the equity is not going to be worth anything. He should have been given a paycut.
As of March 31, 2015 , the Company was in compliance with all of the Financial Covenants associated with its senior secured credit facilities and senior subordinated notes.
They never told us the requirments of the Covenent. Thus all trading done by executives (shorts and sales) is a sign they new they would be in violation of the covenents. Furthermore, the raise is a sign of insider trading because if they knew it was going bankrupt why would they give raises? They may h failed to disclose they were going to be in violation of the covenants
The Company evaluated compliance with its Financial Covenants for 2015 based on management’s most recent forecast and management believes that the Company will meet each of its Financial Covenant requirements in 2015.
For 2016, the Company believes it will meet all covenant requirements in its senior secured credit facilities and senior subordinated notes; however, the senior secured credit facilities mature on December 31, 2016 and the senior subordinated notes mature on January 29, 2017. Because the Company lacks the cash flow from operations to fully pay the senior secured credit facilities and senior subordinated notes at maturity, the Company will have to seek a restructuring, amendment or refinancing of its debt, or if necessary, pursue additional debt or equity offerings, in advance of the debt becoming due. The Company’s ability to restructure, amend or refinance its debt, or to issue additional debt or equity, will depend upon, among other things: (1) the condition of the capital markets at the time, which is beyond the Company’s control; (2) the Company’s future financial and operating performance, which will be affected by prevailing economic conditions and financial, business, regulatory and other factors, many of which are beyond the Company’s control; and (3) the Company’s continued compliance with the terms and covenants in its senior secured credit facilities and senior subordinated notes that govern its d
They can break the covenant. If they fall below certain levels they are breaking the covenant anyways right? My as well issue a dividend which is legal. After they break the covenant, then they can force bankruptcy. Only AFTER the dividend is issued do they break the covenants. Corporations are legally allowed to issue dividends. They are legal owners of the equipment, they can do whateer they want with it.
If the value of the stock is a penny and there are 14 million shares outstanding, we should pay them 100% of the equity in cash or about $3 million.
Just tell them they say the equity the smart guys say the equity is $.12 a share and we will pay them that with our cash. Thus we will give them $.12 a share in equity, paid in cash.
If they are not going to play, issue a dividend about $11. Then destroy anything of value. The price of the stock does not determine the value of a stock. The Value of the stock is $400. If people want to sell their stock for tax loss selling, then go ahead. That is probably why they are doing this in December anyways. The value of the stock is of the past cash flows. The future is only speculation. So the real price of the stock is $400 and if they want 1-2% equity lif they chip in a little equity at $400 a share maybe we will give them a 10% discount.
I still hope they fire him and hire the employee with the most shares bought on the open market as CEO. However, so far we really have nothing except a few press releases that changed the story and seannoise and Jason Kaplan on seekingalpha.
Then shareholders should demand $5 a share to do a prepak. Thus, Joe Walsh and his dream team (f troop) ski buddies should be immediately fired. We have plenty of time to promote old Dex employees to management and we can remain in violation of the covents for a year. Looks like Joe is using shareholders to get a new job with the debt holders. If the contracts expire and the company is worthless in 5 years like seannoise says, the debt holders should not even want equity. We can still turn it around will low cost salesman. Thus they are in fiduciary neglect of the shareholders.
If the phone book business is dead, then the debt holders should not even want equity, they should want to extend their debt and lower their covents. Then Joe Walsh could rightfully keep his job.
Imho, dex one was much stronger financially than SuperMedia, this prepackaged bankruptcy seems nothing more than a plan to assure DEXO would go bankrupt too. When you go bankrupt you are suppose to lose your job as director or CEO and the remaining assets are sold to the highest bidder or taken over by the debt holders. Bankruptcy is suppose to be costly and have penalties so you do everything in your power to avoid it.Still holding hope they come to their senses and either resign or do the right thing.
He is suppose to represent shareholders. If the shareholders are going to lose everything he has no value and should be fired. It would have been much better not to even have a CEO or hire a kid out of school for minimum wage. Instead he gets his pay bumped from 250K to 750K. CEOs should not be paid anyway! If they don't come in with their own equity, they don't deserve to be CEO.
For 2016, the Company believes it will meet all covenant requirements in its senior secured credit facilities and senior subordinated notes; however, the senior secured credit facilities mature on December 31, 2016 and the senior subordinated notes mature on January 29, 2017. Because the Company lacks the cash flow from operations to fully pay the senior secured credit facilities and senior subordinated notes at maturity, the Company will have to seek a restructuring, amendment or refinancing of its debt, or if necessary, pursue additional debt or equity offerings, in advance of the debt becoming due. 5-2015.
Why won't the phone companies reissue contracts for phone books? I use the phone book all the time especially in motels and hotels.
in a prepackaged bankrupty they have a much better chance to keep their jobs and bonuses. However, according to Nov 5th release, they mention no bankruptcy. After the guy hired all is buddies, gave themselves big raises, General and Admin expenses up 300% yoy 16 to 52. I believe it deserves a letter to FBI to make sure they are not using the boards to sway opinion and give company to Senior creditors. Who knows they might be legally required to pay bondholders if they have the cash to pay. Who knows some of these people on the message boards might work for DXM and not disclose it.
Reply it also does not matter. They have money to pay the debt if they can according to the annual report. Also they have yet to disclose they are in a prepackaged bankruptcy. FBI is definitely getting a notice.