The debt-laden home health care supplier (Ticker: AHOM) has received a month's grace from its lenders on the $226 million that was due this past Saturday. After Sept. 1, those lenders — led by 48 percent shareholder Highland Capital Management — can foreclosure on "substantially all the assets of the Company." (Search for 'Going concern.')
Aug 4, 2009 8:18 AM
The struggling veterinary hospital operator (Ticker: VETS) has renegotiated its loan with Huntington Capital, which is based in San Diego.
The First Amendment waives the Company’s default of the prior covenants as of December 31, 2008, as well as through March 31, 2009. In addition, all future financial covenant requirements have been removed through the term of the loan. Under the terms of the First Amendment, the Company is required to accelerate and make a $0.3 million principal payment on April 1, 2009 and then pay the remaining $1.1 million of principal over eighteen ratable monthly payments commencing on July 1, 2009 and ending on December 1, 2010. There was no change to the interest rate of the note. Additionally, upon execution of the First Amendment, the Company was required to pay a $100,000 restructuring fee and will be required to pay an additional restructuring fee of $150,000 on December 1, 2010.
Mar 31, 2009 10:01 PM
Brentwood-based animal hospital chain Pet DRx early this year secured $5.5 million in debt paying 12 percent from its two majority shareholders. Now that the company (Ticker: VETS) has gone to holders of its other debt to amend their terms, Galen Partners and Camden Partners will be paid a premium of more than $10 million on the $5.5 million in new debt.
Mar 15, 2009 9:41 PM
Time to brush up on FASB 142, the accounting rule that requires companies to take a close look at the goodwill on their books at the end of the year. Both Louisiana-Pacific and Brookdale Senior Living reported big fourth-quarter losses due in large goodwill impairment charges – $274 million and $215 million, respectively. That's got both companies focusing in cash. LP (Ticker: LPX) booked a Q4 loss of $341 million as revenue fell by a third to $250 million from late 2007. CEO Rick Frost said his team, which has been cutting costs big time, is "actively considering other financing and refinancing transactions to improve our overall liquidity." At Brookdale (Ticker: BKD), fourth-quarter losses totaled $279 million although revenues rose slightly to $487 million. CFO Mark Ohlendorf said "Brookdale is in a solid liquidity position" and will use its cash to slim its debt load. The company on Friday said it has pushed out the due dates for a chunk of that debt.
Mar 2, 2009 6:52 AM
The parent of Mapco has agreed with its lenders to amend an asset-based lending agreement because of the fatal accident that shut down its Texas refinery last November. Among the terms is a clause that lets the company (Ticker: DK) shift assets from one division to another and a Sept. 30 deadline to get the refinery back up and running. The company last month said it was shooting for a May restart.
Feb 23, 2009 7:51 AM
On their conference call Monday, CBRL Group (Ticker: CBRL) executives wouldn't disclose – despite being pressed by analysts – the numbers behind the debt covenant ratios they said they are complying with. A day and a half later, they have changed their minds and show that, at its current level, one of those ratios will be too high come May 1.
Nov 25, 2008 6:33 PM