RE:RE:WHERE'S THE GUARANTEE - BIG DREAMS OR BIG PBLUNDER ?To anyone out there who has never financed a company before, most debt arrangements prohibit things like a share buyback when you are not inside typical debt covenants. I would suggest that Poydras has two covenant issues:
1) DEBT to EBITDA ratio. This should be below 3:1 at the highest. FYI, that's at trailing 12 month EBITDA, not projected EBITDA.
2) Debt Service Coverage. Since Poydras has high interest levels on debt, they need a alot of free cash to service their debt.
So here it is. I understand that if you've never done this before, the answers look awfully simple. They're not!! Stop thinking they are. Poydras has a lot of smart financial people involved, and they have looked at all their options.
From an investor point of view, I support this move, then a debt restructure. With these moves, I expect the stock to be at $1.00 by May/June after Q1 is released.
VeeP