NYSEAM:SEB - Post by User
Comment by
mjh9413on Nov 06, 2019 10:32pm
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Post# 30318858
RE:some overhang to chew thru (fin out today)
RE:some overhang to chew thru (fin out today)They needed a lifeline to make themselves potentially viable, paying off the Paradigm debt they were left with after the 'deal' most of which was not adhering to covenants, but is it enuf?
They had ~$13MM of debt last financials (some of which was prime+ vs the new Deb!) and they have still to get a new credit facility on top of this 'lifeline' so all is not cemented with regard to debt burden (it's just the "lifeline' holder is prepared to wait at least a couple of years.) However what we need NOW is for management and the BoD to finally come thru with the ability to steer the company to positive cash flow, and meaningful cash flow. Enough of all this ancient talk of RFP and client potential, we need real financial progress to support the total share count of about 1/4million.
Hey, the Deb holder is hardly at risk as it is secured to the hilt, which makes me wonder what unsecured credit facility they can negotiate unless Deb is subordinate to this lending. It's beyond Good Luck now.