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Sir Royalty Income Fund T.SRV.UN

Alternate Symbol(s):  SIRZF

SIR Royalty Income Fund (the Fund) holds investment in SIR Corp (SIR). The Funds' investment, SIR is engaged in the business of owning and operating full-service restaurants in Canada. SIR has concept restaurant brands, including Jack Astor’s Bar and Grill, Scaddabush Italian Kitchen & Bar, and Canyon Creek Chop House, signature restaurant brands, such as Reds Wine Tavern, Reds Midtown Tavern, Reds Square One, and The Loose Moose, which are used by SIR under a license agreement with SIR Royalty Limited Partnership (the Partnership. The Fund receives distribution income from its investment in the Partnership and interest income from the SIR Loan. The Fund indirectly participates in the revenues generated under the License and Royalty Agreement through its Investment in the Partnership.


TSX:SRV.UN - Post by User

Comment by Wordless1on Mar 12, 2021 3:18pm
100 Views
Post# 32787285

RE:Hot off the press...

RE:Hot off the press...That's grim. Sounds like they are warning the market that there is a realy liklyhood that the bank isn't going to be providing covennat waivers any more.

SIR owes SRV somewhere around $11M in deferred royatlies, yet SIR has about $2M in cash and a bunch of deferred rents that will have to eventually be repaid if they don't fold before that. SIR's balance sheet is a scary thing. Current assets if 15M and current liabilities of $123M... Sure back out the debt as its now classified as current, but $22M in payables alone and $39M of long-term debt.

Going into bankruptcy protection and renegotiaing those debts with their creditors like their landlords and SRV.UN, to make a lot of that debt go away appears to be the only real way they can survive this mess. SRV needs SIR to survive so I woudn't be surpsised if in one way or another, most of theose deferred royalties go away and are never paid.

One of the ugliest balance sheets I've ever seen. I have no idea why anyone would be buying SRV.UN right now. The Operating Company is on the brink with no real way out. Best of luck if you're holding this. I wouldn't touch it with a million foot poll looking at that balance sheet.




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