RE:Quote from Oct 2012 Globe & Mail Article on Yellow Media lumber, here are their near term obligations, and given that the 2017 Adj EBITDA forecast has declined 21% relative to prior forecast there is a concern that their expenses will consume all free cash flow and any fines or legal settlements will be the toaster in the bathtub and they can not service their debt.
Here are the company's near term obligations for this year.
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~$270MM in interest payments,
$40MM in amortization payments,
earnout payment on the 4 mysterious generics they bought in July 2016 that "they can't talk about" (these drugs will be what I anticipate will be the 3rd CMA investigation),
Principal repayment of $34MM (Oct/17) this year on their bridge loan
Anywaaaayss.. GLTA.. . I have no need to waste my time here further. The market will decide if this is a zero - not anywone here.
Lumberfeverlong wrote: "The company said it needs to restructure because it is carrying too much debt and much of it is set to come due in the next year. Revenue is declining at its printed Yellow Pages division, and digital revenue isn’t growing fast enough to make up the difference."
The quote above underlines the key difference between the Yellow Media situation pre their restructuring and CXR's situation today. CXR has no significant debt comng due until 2021 while Yellow Media had most of its debt coming due in the year following their restructuring. Any restructuring of CXR will have to obtain court and stakeholder approvals and I am at a loss to see how any judge would allow a restructuring to occur when the company has as much liquidity as CXR has and has no debt maturities looming for several years.