tag:blogger.com,1999:blog-3831336050432377467.post5683541946410288132..comments2023-05-17T04:29:24.591-05:00Comments on DMNcuts: Hoping for this RIF to pass over?DMNcutsadminhttp://www.blogger.com/profile/04656155776293093412noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-3831336050432377467.post-56357411538192238772009-03-23T12:27:00.000-05:002009-03-23T12:27:00.000-05:00While I am not an expert in corporate finance, I a...While I am not an expert in corporate finance, I am concerned about AH Belo’s cash flow and it loan obligations to its lenders.<BR/><BR/>The information I am going to refer to is in the company’s annual report (10-k report), available on the web at http://phx.corporate-ir.net/phoenix.zhtml?c=219524&p=irol-sec<BR/><BR/>Here is a summary of that it says regarding its credit arrangements with the banks:<BR/><BR/>-- On February 4, 2008, the Company entered into a $100 million credit agreement with JP Morgan Chase Bank, J.P. Morgan Securities, Banc of America Securities and Bank of America. At that time the company had no debt.<BR/>-- As of September 30, 2008, the Company was not in compliance with the credit agreement. The company has used $10 million of its line of credit.<BR/>-- During the fourth quarter of 2008, the Company’s bank group approved an amendment credit agreement. (In part reducing the line of credit to $50 million.)<BR/>-- On January 30, 2009, the Company amended its credit agreement again. Among other matters, the amended credit document creates a line of credit secured by the Company’s accounts receivable, inventory, real property and other assets; and sets earning benchmarks that the company must meet.<BR/><BR/>Under the credit agreement the Company must meet the minimum adjusted EBITDA (Earnings Before Interest Taxes Depreciation and Amortization) as outlined below:<BR/> <BR/>For the six months ended March 31, 2009: -$4,000,000 (a negative number)<BR/>For the nine months ended June 30, 2009: $6,500,000<BR/>For the 12 months ended September 30, 2009: $15,000,000<BR/>For the 12 months ended December 31, 2009: $22,500,000<BR/> <BR/>The key question is whether the company and meet these benchmarks. If it doesn’t, several things could occur:<BR/>-- AH Belo renegotiates its credit agreement<BR/>-- The banks foreclose on AH Belo’s property<BR/>-- The company goes into bankruptcyAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-3831336050432377467.post-86663411343393855572009-03-23T09:47:00.000-05:002009-03-23T09:47:00.000-05:00I dunno about "unctuous." I *am* envious of Rod's ...I dunno about "unctuous." I *am* envious of Rod's ability to do what everybody says we should be doing: Create a "brand" for himself that goes beyond the DMN. OTOH, if my job with the DMN were primarily (at least in signed work) national analysis, I would not be sleeping as soundly as I might otherwise...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3831336050432377467.post-31103328535850555742009-03-22T20:17:00.000-05:002009-03-22T20:17:00.000-05:00Try striking the lintel and sideposts with a schme...Try striking the lintel and sideposts with <A HREF="http://blog.beliefnet.com/crunchycon/2009/03/lies-solzhenitsyn-and-us_comments.html" REL="nofollow">a schmear of unctuous Solzhenitsyn</A>. That's what those who will be keeping their jobs are finding useful.Anonymousnoreply@blogger.com