RE: Not a done deal - Derivative Actions You need to read the press release again. It does not say projections used in fairness opinion are no longer valid. It says the projections could be wrong (usual disclaimer) and that 2013 is expected to be well below 2012. Analysts already expect this, so no news here.
In the course of negotiations with the lenders in connection with the Recapitalization, the Company disclosed confidential information to the lenders pursuant to signed confidentiality agreements. The confidential information included forecasts for the 2012 to 2016 fiscal years that were prepared in early 2012 (the "5-Year Plan") and were based on certain assumptions which were believed to be reasonable in the circumstances at the time. However, forecasts for such a lengthy period of time are based on assumptions that invariably change over time and therefore the forecasted results are often not achieved. Accordingly, it is expected that actual results will vary from the forecasted results and such variations may be significant. According to the 5-Year Plan, forecasted earnings before interest, taxes, depreciation and amortization ("EBITDA") during the five-year period should be sufficient to enable the Company to meet its obligations and give effect to its announced business plan notwithstanding that those forecasts showed fiscal 2013 EBITDA being substantially lower than forecasted fiscal 2012 EBITDA. It is important to note that the 5-Year Plan was not prepared for purposes of public disclosure, may not be appropriate for purposes other than for what it was prepared, does not constitute guidance and should not be relied upon generally by securityholders of the Company. The Company will make no further comments with respect to this information unless required under applicable law.