RE: RE: 102/125 = about 82% writedown You have a point here!
Take or Pay generally refers to a deal whereby the company agrees to take future services or pay a penalty, often a % of the agreed "take" price.
It would be an accounting issue of how to recognise these contracts, but I would expect them to be shown as revenue and receivable only for the current "earned" income portion. It would not be a write-off in this case as the financials are restated without the unearned income.
However, having recognised the income, they may not have reconised the unspent expenses - thus very high margins. This income an ebitda may have been used to support the bank line, which now may be in non-compliance.
More clarification is needed.
Terr