RE: RE: Answer to all this...... Quick explanation is 2 steps
- Demand for Payment from Secured Creditors and Delay in Filing Financial Statements
- Announces CCAA Filing
al182,
Cash position……Try pulling out your calculator and you will quickly see how ugly the numbers are
The company made $40-50 million but paid out to $80 million per year in dividends.
Went from saying they have 60% leased contracts through to the end of 2012 to saying 0% leased contracts and 20% fleet on short term rental.
Have a bank problem - Recorded as long term debt (even though it is a secured to asset two-year extendible revolving credit facility) Drew down $56 million of their $100 million revolving credit facility and provided the covenants that at all times its working capital ratio shall be not less than 1.2 and (EBITDA) for the trailing 12 months shall not be greater than 1.5 to 1.