NYSEAM:AEF - Post by User
Comment by
nini222on Mar 09, 2018 10:54am
89 Views
Post# 27691048
RE:debt-to-leverage
RE:debt-to-leverageyour numbers seem right, here is an extract from the PR:
"In response to the ongoing deterioration of Acasta’s business, projections that showed that Acasta’s expected 2018 financial performance was going to be weaker than expected and Martello’s delivery of the letter to the Board, the Majority Lender required more stringent terms than Acasta originally contemplated in order to provide its consent. In particular, the Majority Lender demanded an immediate U.S.$5 million repayment of debt plus the Principal Payment by March 1, 2018."
Negative EBITDA in Q4 is absolutely a possibility, imagine what it would take to have a bank demand re-payment? Clearly the debt holder here sees a very real risk that they could default...what does that mean for the equity holders? How awful does management have to be to have this happen so fast? Only a few months ago they mentioned some of their challenges were simpyl temporary in nature...the issue now is how can you trust anything these people say? They haven't ever even issued a full years worth of audited F/S....I think there are many skeletons in the closet still. Banks don't normally demand payment in this rushed fashion unless they saw a real possiblity that the business was at risk of defaulting...If the Stellwagen sale stalls, which it obviously is already facing issues with all these delays, they will probably have to declare bankruptcy and the shares will be worthless.